IDEAS home Printed from https://ideas.repec.org/a/bla/presci/v99y2020i5p1389-1411.html
   My bibliography  Save this article

Evaluation of self‐employment support policies using survival analysis. The discounted flat rate in Andalusia (Spain)

Author

Listed:
  • Sandra M. Sánchez‐Cañizares
  • L. Javier Cabeza‐Ramírez
  • M. Dolores Guerrero‐Baena

Abstract

The rise in unemployment during the economic recession led to widespread support for active labour market policies (ALMP) from public and private institutions. Among these measures, Spain has developed the so‐called discounted flat rate for self‐employed workers, which consists of a series of reductions and subsidies applied to their social security contributions when they start their activity. The aim of this study is to evaluate this policy in the Autonomous Community of Andalusia (Spain), a region with an unemployment rate of over 20%, comparing the survival of a group of self‐employed workers who benefited from this subsidy with that of another group without the discounted flat rate. The results suggest the survival of the group with the subsidy surpasses that of the group without, although the positive effects of the measure disappear over the long term. El aumento del desempleo durante la recesión económica dio lugar a un apoyo generalizado de las instituciones públicas y privadas a las políticas activas del mercado laboral (PAML). Entre estas medidas, España ha desarrollado la llamada tarifa plana reducida para los trabajadores autónomos, que consiste en una serie de reducciones y subsidios aplicados a sus contribuciones a la seguridad social cuando inician su actividad. El objetivo de este estudio es evaluar esta política en la Comunidad Autónoma de Andalucía (España), una región con una tasa de desempleo superior al 20%, mediante la comparación de la supervivencia laboral de un grupo de trabajadores autónomos que se beneficiaron de esta subvención con la de otro grupo sin acceso a la tarifa plana reducida. Los resultados sugieren que la supervivencia laboral del grupo con el subsidio supera a la del grupo sin él, aunque los efectos positivos de la política desaparecen a largo plazo. 景気後退期における失業率の上昇により、公的機関および民間機関から積極的労働市場政策(active labour market policies:ALMP)が広く支持されるようになった。こうした政策の中でも、スペインは、自営業者の活動開始時に社会保障費を削減・補助するdiscounted flat rate(割引定額制)を導入している。本研究の目的は、失業率が20%以上の地域であるアンダルシア州(スペイン)において、この制度による補助を受けた自営業者グループの生存率と、この制度がない別のグループの生存率と比較してこの政策の評価を行うことである。結果から、補助金を受けたグループの生存率は、この制度のないグループのそれを上回ったことが示唆されるが、政策のプラスの効果は長期にわたって認められなかった。

Suggested Citation

  • Sandra M. Sánchez‐Cañizares & L. Javier Cabeza‐Ramírez & M. Dolores Guerrero‐Baena, 2020. "Evaluation of self‐employment support policies using survival analysis. The discounted flat rate in Andalusia (Spain)," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1389-1411, October.
    • Handle: RePEc:bla:presci:v:99:y:2020:i:5:p:1389-1411
    DOI: 10.1111/pirs.12533
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/pirs.12533
    Download Restriction: no
    File URL: https://libkey.io/10.1111/pirs.12533?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Begoña Cueto & Matías Mayor & Patricia Suárez, 2017. "Evaluation of the Spanish flat rate for young self-employed workers," Small Business Economics, Springer, vol. 49(4), pages 937-951, December.
    2. Anna L. Paulson & Robert M. Townsend & Alexander Karaivanov, 2006. "Distinguishing Limited Liability from Moral Hazard in a Model of Entrepreneurship," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 100-144, February.
    3. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    4. Raquel Carrasco, 1999. "Transitions to and From Self‐employment in Spain: An Empirical Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 315-341, August.
    5. C. Praag & Peter Versloot, 2007. "What is the value of entrepreneurship? A review of recent research," Small Business Economics, Springer, vol. 29(4), pages 351-382, December.
    6. Caliendo, Marco & Mahlstedt, Robert & Mitnik, Oscar A., 2017. "Unobservable, but unimportant? The relevance of usually unobserved variables for the evaluation of labor market policies," Labour Economics, Elsevier, vol. 46(C), pages 14-25.
    7. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    8. Alessio Brown & Johannes Koettl, 2015. "Active labor market programs - employment gain or fiscal drain?," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-36, December.
    9. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    10. David Audretsch & Max Keilbach, 2004. "Entrepreneurship Capital and Economic Performance," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 949-959.
    11. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment? [‘The non-parametric identification of treatment effects in duration models’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 17(35), pages 409-448.
    12. Christian Dudel & María Andrée López Gómez & Fernando G. Benavides & Mikko Myrskylä, 2018. "The Length of Working Life in Spain: Levels, Recent Trends, and the Impact of the Financial Crisis," European Journal of Population, Springer;European Association for Population Studies, vol. 34(5), pages 769-791, December.
    13. Dirk Oberschachtsiek, 2012. "The experience of the founder and self-employment duration: a comparative advantage approach," Small Business Economics, Springer, vol. 39(1), pages 1-17, July.
    14. Winterhager, Henrik & Heinze, Anja & Spermann, Alexander, 2006. "Deregulating job placement in Europe: A microeconometric evaluation of an innovative voucher scheme in Germany," Labour Economics, Elsevier, vol. 13(4), pages 505-517, August.
    15. Marco Caliendo & Alexander Kritikos, 2010. "Start-ups by the unemployed: characteristics, survival and direct employment effects," Small Business Economics, Springer, vol. 35(1), pages 71-92, July.
    16. Jörn Block & Philipp Sandner, 2009. "Necessity and Opportunity Entrepreneurs and Their Duration in Self-employment: Evidence from German Micro Data," Journal of Industry, Competition and Trade, Springer, vol. 9(2), pages 117-137, June.
    17. Richard Duhautois & Dominique Redor & Lionel Desiage, 2015. "Long Term Effect of Public Subsidies on Start-up Survival and Economic Performance: An Empirical Study with French Data," Revue d'économie industrielle, De Boeck Université, vol. 0(1), pages 11-41.
    18. Alberto Abadie & Guido W. Imbens, 2016. "Matching on the Estimated Propensity Score," Econometrica, Econometric Society, vol. 84, pages 781-807, March.
    19. Marco Caliendo & Jens Hogenacker & Steffen Künn & Frank Wießner, 2015. "Subsidized start-ups out of unemployment: a comparison to regular business start-ups," Small Business Economics, Springer, vol. 45(1), pages 165-190, June.
    20. C. Mirjam van Praag, 2003. "Business Survival and Success of Young Small Business Owners," Tinbergen Institute Discussion Papers 03-050/3, Tinbergen Institute.
    21. Marco Caliendo & Jens Hogenacker & Steffen Künn & Frank Wießner, 2012. "Alte Idee, neues Programm: Der Gründungszuschuss als Nachfolger von Überbrückungsgeld und Ich-AG [Old idea, new program: The new start-up subsidy as a successor of the former bridging allowance and," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(2), pages 99-123, July.
    22. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    23. Zoltan Acs & Thomas Åstebro & David Audretsch & David T. Robinson, 2016. "Public policy to promote entrepreneurship: a call to arms," Small Business Economics, Springer, vol. 47(1), pages 35-51, June.
    24. Renaud Bourlès & Anastasia Cozarenco, 2018. "Entrepreneurial motivation and business performance: evidence from a French Microfinance Institution," Small Business Economics, Springer, vol. 51(4), pages 943-963, December.
    25. Michael Fritsch, 2008. "How does new business formation affect regional development? Introduction to the special issue," Small Business Economics, Springer, vol. 30(1), pages 1-14, January.
    26. M. T. Nziramasanga & S. Bhattacharjee & M. Lee, 2009. "Viability of Self-Employment," Journal of Development Studies, Taylor & Francis Journals, vol. 45(7), pages 1070-1092, August.
    27. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    28. Ramana Nanda, 2008. "Cost of External Finance and Selection into Entrepreneurship," Harvard Business School Working Papers 08-047, Harvard Business School.
    29. David B. Audretsch (ed.), 2006. "Entrepreneurship, Innovation and Economic Growth," Books, Edward Elgar Publishing, number 4130.
    30. Baumol, William J., 2008. "Small enterprises, large firms, productivity growth and wages," Journal of Policy Modeling, Elsevier, vol. 30(4), pages 575-589.
    31. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2013. "The performance of estimators based on the propensity score," Journal of Econometrics, Elsevier, vol. 175(1), pages 1-21.
    32. Begona Cueto & Javier Mato, 2006. "An analysis of self-employment subsidies with duration models," Applied Economics, Taylor & Francis Journals, vol. 38(1), pages 23-32.
    33. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    34. David B. Audretsch & Roy Thurik, 2001. "Linking Entrepreneurship to Growth," OECD Science, Technology and Industry Working Papers 2001/2, OECD Publishing.
    35. Alfredo Del Monte & Domenico Scalera, 2001. "The Life Duration of Small Firms Born Within a Start-up Programme: Evidence from Italy," Regional Studies, Taylor & Francis Journals, vol. 35(1), pages 11-21.
    36. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 65(2), pages 261-294.
    37. Millán, José María & Congregado, Emilio & Román, Concepción, 2010. "Determinants of Self-Employment Dynamics and their Implications on Entrepreneurial Policy Effectiveness," Revista Lecturas de Economía, Universidad de Antioquia, CIE, August.
    38. Audretsch, David B & Mahmood, Talat, 1995. "New Firm Survival: New Results Using a Hazard Function," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 97-103, February.
    39. Dudel, Christian & López Gómez, María Andrée & Benavides, Fernando G. & Myrskylä, Mikko, 2018. "The length of working life in Spain: levels, recent trends, and the impact of the financial crisis," LSE Research Online Documents on Economics 86990, London School of Economics and Political Science, LSE Library.
    40. Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.
    41. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511.
    42. Congregado, Emilio & Golpe, Antonio A. & Carmona, Mónica, 2010. "Is it a good policy to promote self-employment for job creation? Evidence from Spain," Journal of Policy Modeling, Elsevier, vol. 32(6), pages 828-842, November.
    43. Cueto Iglesias, Begoña, 2008. "The sustainability of start-up firms among formerly wage workers," DEE - Working Papers. Business Economics. WB wb083108, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Caliendo, Marco & Künn, Steffen & Weißenberger, Martin, 2016. "Personality traits and the evaluation of start-up subsidies," European Economic Review, Elsevier, vol. 86(C), pages 87-108.
    2. Caliendo, Marco & Künn, Steffen & Weissenberger, Martin, 2020. "Catching up or lagging behind? The long-term business and innovation potential of subsidized start-ups out of unemployment," Research Policy, Elsevier, vol. 49(10).
    3. Marco Caliendo & Steffen Künn, 2015. "Getting back into the labor market: the effects of start-up subsidies for unemployed females," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(4), pages 1005-1043, October.
    4. Begoña Cueto & Matías Mayor & Patricia Suárez, 2017. "Evaluation of the Spanish flat rate for young self-employed workers," Small Business Economics, Springer, vol. 49(4), pages 937-951, December.
    5. Raquel Justo & Emilio Congregado & Concepción Román, 2021. "Becoming self-employed from inactivity: an in-depth analysis of satisfaction," Small Business Economics, Springer, vol. 56(1), pages 145-187, January.
    6. Marco Caliendo & Steffen K�nn, 2014. "Regional Effect Heterogeneity of Start-up Subsidies for the Unemployed," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 1108-1134, June.
    7. Marco Caliendo & Jens Hogenacker & Steffen Künn & Frank Wießner, 2015. "Subsidized start-ups out of unemployment: a comparison to regular business start-ups," Small Business Economics, Springer, vol. 45(1), pages 165-190, June.
    8. Lutz Bellmann & Marco Caliendo & Stefan Tübbicke, 2018. "The Post‐Reform Effectiveness of the New German Start‐Up Subsidy for the Unemployed," LABOUR, CEIS, vol. 32(3), pages 293-319, September.
    9. Seonho Shin, 2022. "Evaluating the Effect of the Matching Grant Program for Refugees: An Observational Study Using Matching, Weighting, and the Mantel-Haenszel Test," Journal of Labor Research, Springer, vol. 43(1), pages 103-133, March.
    10. Begoña Cueto & Patricia Suárez & Matías Mayor, 2021. "Effects of human capital and regional context on entrepreneurial survival," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(2), pages 331-357, April.
    11. Lukas Matejovsky & Sandeep Mohapatra & Bodo Steiner, 2014. "The Dynamic Effects of Entrepreneurship on Regional Economic Growth: Evidence from Canada," Growth and Change, Wiley Blackwell, vol. 45(4), pages 611-639, December.
    12. Román, Concepción & Congregado, Emilio & Millán, José María, 2013. "Start-up incentives: Entrepreneurship policy or active labour market programme?," Journal of Business Venturing, Elsevier, vol. 28(1), pages 151-175.
    13. Millán, José María & Congregado, Emilio & Román, Concepción, 2014. "Persistence in entrepreneurship and its implications for the European entrepreneurial promotion policy," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 83-106.
    14. José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.
    15. Marco Caliendo & Alexander S. Kritikos & Claudia Stier, 2023. "The influence of start-up motivation on entrepreneurial performance," Small Business Economics, Springer, vol. 61(3), pages 869-889, October.
    16. Rodríguez-Planas, Núria, 2007. "What Works Best for Getting the Unemployed Back to Work: Employment Services or Small-Business Assistance Programmes? Evidence from Romania," IZA Discussion Papers 3051, Institute of Labor Economics (IZA).
    17. Huňady Ján & Šipikal Miroslav & Pisár Peter & Hiadlovský Vladimír, 2022. "One-way ticket from unemployment to entrepreneurship? Evaluation of allowance for self-employment in least developed regions," Central European Journal of Public Policy, Sciendo, vol. 16(2), pages 1-17, December.
    18. Xu, Tao & Zhu, Weiwei, 2022. "Entrepreneurs or Employees: What Chinese Citizens Encouraged to Become by Social Attitudes?," MPRA Paper 113212, University Library of Munich, Germany.
    19. Colombelli, Alessandra & Krafft, Jackie & Vivarelli, Marco, 2016. "New Firms and Post-Entry Performance: The Role of Innovation," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201602, University of Turin.
    20. Marco Caliendo & Maximilian Goethner & Martin Weißenberger, 2020. "Entrepreneurial persistence beyond survival: Measurement and determinants," Journal of Small Business Management, Taylor & Francis Journals, vol. 58(3), pages 617-647, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:presci:v:99:y:2020:i:5:p:1389-1411. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.