The Post-Reform Effectiveness of the New German Start-Up Subsidy for the Unemployed

The Post-Reform Effectiveness of the New German Start-Up Subsidy for the Unemployed PDF Author: Lutz Bellmann
Publisher:
ISBN:
Category :
Languages : en
Pages : 37

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Book Description
Start-up subsidies for the unemployed have long been an important active labor market policy strategy in Germany. The current subsidy program underwent a major reform in 2011 that changed its key parameters: support was lowered, eligibility criteria were tightened and entitlement was abandoned by granting caseworkers the right to reject applications. Ex-ante predictions on the post-reform effectiveness of the program are ambiguous, and knowledge about the importance of institutional details of such a program is very limited, making a new evaluation necessary. In our descriptive analysis, we compare personal and business characteristics of participants before and after the reform and we find significant differences in terms of gender composition, educational attainment and industry-specific experience. Post-reform participants also perform better in terms of subsequent labor market integration and show signs of higher commitment. These findings give us some indication for interpreting our estimates of causal effects of the post-reform program. We find that for both men and women, employment and income effects of the post-reform program are positive, sizable, and larger than what was estimated for the pre-reform program. All in all, the programs effectiveness seems to have improved through the reform. Potential reasons for this are discussed and include better screening of participants by caseworkers, higher rates of commitment and changes in macroeconomic conditions.

The Post-Reform Effectiveness of the New German Start-Up Subsidy for the Unemployed

The Post-Reform Effectiveness of the New German Start-Up Subsidy for the Unemployed PDF Author: Lutz Bellmann
Publisher:
ISBN:
Category :
Languages : en
Pages : 37

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Book Description
Start-up subsidies for the unemployed have long been an important active labor market policy strategy in Germany. The current subsidy program underwent a major reform in 2011 that changed its key parameters: support was lowered, eligibility criteria were tightened and entitlement was abandoned by granting caseworkers the right to reject applications. Ex-ante predictions on the post-reform effectiveness of the program are ambiguous, and knowledge about the importance of institutional details of such a program is very limited, making a new evaluation necessary. In our descriptive analysis, we compare personal and business characteristics of participants before and after the reform and we find significant differences in terms of gender composition, educational attainment and industry-specific experience. Post-reform participants also perform better in terms of subsequent labor market integration and show signs of higher commitment. These findings give us some indication for interpreting our estimates of causal effects of the post-reform program. We find that for both men and women, employment and income effects of the post-reform program are positive, sizable, and larger than what was estimated for the pre-reform program. All in all, the programs effectiveness seems to have improved through the reform. Potential reasons for this are discussed and include better screening of participants by caseworkers, higher rates of commitment and changes in macroeconomic conditions.

New Evidence on Long-term Effects of Start-up Subsidies

New Evidence on Long-term Effects of Start-up Subsidies PDF Author: Marco Caliendo
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
The German start-up subsidy (SUS) program for the unemployed has recently undergone a major make-over, altering its institutional setup, adding an additional layer of selection and leading to ambiguous predictions of the program's effectiveness. Using propensity score matching (PSM) as our main empirical approach, we provide estimates of long-term effects of the post-reform subsidy on individual employment prospects and labor market earnings up to 40 months after entering the program. Our results suggest large and persistent long-term effects of the subsidy on employment probabilities and net earned income. These effects are larger than what was estimated for the pre-reform program. Extensive sensitivity analyses within the standard PSM framework reveal that the results are robust to different choices regarding the implementation of the weighting procedure and also with respect to deviations from the conditional independence assumption. As a further assessment of the results' sensitivity, we go beyond the standard selection-on-observables approach and employ an instrumental variable setup using regional variation in the likelihood of receiving treatment. Here, we exploit the fact that the reform increased the discretionary power of local employment agencies in allocating active labor market policy funds, allowing us to obtain a measure of local preferences for SUS as the program of choice. The results based on this approach give rise to similar estimates. Thus, our results indicating that SUS are still an effective active labor market program after the reform do not appear to be driven by "hidden bias".

Start-up Grants to Unemployed Immigrants in Germany

Start-up Grants to Unemployed Immigrants in Germany PDF Author: Eric D. Robinson
Publisher:
ISBN:
Category : Economic assistance, Domestic
Languages : en
Pages : 250

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Book Description


OECD Studies on SMEs and Entrepreneurship Framework for the Evaluation of SME and Entrepreneurship Policies and Programmes 2023

OECD Studies on SMEs and Entrepreneurship Framework for the Evaluation of SME and Entrepreneurship Policies and Programmes 2023 PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9264851089
Category :
Languages : en
Pages : 174

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Book Description
Evaluation is the foundation of evidence-based policy. Yet there is a dearth of reliable impact evaluation in the area of SME and entrepreneurship policy. This publication issues OECD guidance on how governments can promote reliable SME and entrepreneurship policy evaluation.

The German Labor Market Reforms and Post-Unemployment Earnings

The German Labor Market Reforms and Post-Unemployment Earnings PDF Author: Niklas Engbom
Publisher: International Monetary Fund
ISBN: 1513531255
Category : Business & Economics
Languages : en
Pages : 26

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Book Description
In 2003–05, Germany undertook extensive labor market reforms which were followed by a large and persistent decline in unemployment. Key elements of the reforms were a drastic cut in benefits for the long-term unemployed and tighter job search and acceptance obligations. Using a large confidential data set from the German social security administration, we find that the reforms were associated with a fall in the earnings of workers returning to work from short-term unemployment relative to workers in long-term employment of about 10 percent. We interpret this as evidence that the reforms strengthened incentives to return to work but, in doing so, they adversely affected post re-entry earnings.

The Missing Entrepreneurs 2023 Policies for Inclusive Entrepreneurship and Self-Employment

The Missing Entrepreneurs 2023 Policies for Inclusive Entrepreneurship and Self-Employment PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9264367063
Category :
Languages : en
Pages : 312

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Book Description
The Missing Entrepreneurs 2023 is the seventh edition in a series of biennial reports examining how government policies can release untapped entrepreneurial potential from under-represented parts of the population of impactful entrepreneurs, including women, youth, seniors, the unemployed, immigrants and people with disabilities.

The Entrepreneurial Society

The Entrepreneurial Society PDF Author: Mark Sanders
Publisher: Springer Nature
ISBN: 3662610078
Category : Business & Economics
Languages : en
Pages : 262

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Book Description
This open access book is an outcome of the EU’s Horizon 2020 project ‘Financial and Institutional Reforms for an Entrepreneurial Society’ (FIRES). Building on historical, economic and legal analysis, and combining methods and data across disciplines, the authors provide policymakers, stakeholders and scholars with valuable new tools for assessing and improving Europe’s entrepreneurial ecosystems. Then experts from Germany, Italy and the United Kingdom discuss tailored strategies for introducing entrepreneurial policy reforms in their respective countries.

The Missing Entrepreneurs 2014 Policies for Inclusive Entrepreneurship in Europe

The Missing Entrepreneurs 2014 Policies for Inclusive Entrepreneurship in Europe PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9264213597
Category :
Languages : en
Pages : 242

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Book Description
The Missing Entrepreneurs 2014 is the second edition in a series of annual reports that provide data and policy analysis on inclusive entrepreneurship, and on its barriers, by target social groups across the European Union.

Local Economic and Employment Development (LEED) Inclusive Business Creation Good Practice Compendium

Local Economic and Employment Development (LEED) Inclusive Business Creation Good Practice Compendium PDF Author: OECD
Publisher: OECD Publishing
ISBN: 9264251499
Category :
Languages : en
Pages : 182

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Book Description
This compendium contains 20 case studies of public programmes in European countries that are successfully supporting business creation by people from disadvantaged and under-represented groups in entrepreneurship.

Doing Business 2020

Doing Business 2020 PDF Author: World Bank
Publisher: World Bank Publications
ISBN: 1464814414
Category : Business & Economics
Languages : en
Pages : 241

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Book Description
Seventeen in a series of annual reports comparing business regulation in 190 economies, Doing Business 2020 measures aspects of regulation affecting 10 areas of everyday business activity.