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Social security etitlements and early-stage entrepreneurial activity; an empirical analysis

Author

Listed:
  • André van Stel
  • Peter Brouwer
  • Sander Wennekers
  • Jolanda Hessels

Abstract

This exploratory study focuses on the relation between social security entitlements and the rate of early-stage entrepreneurial activity at the country level. Using a sample of countries participating in the Global Entrepreneurship Monitor, we explore how various measures of entrepreneurial activity are related to 'replacement rates' in case of unemployment and illness/disability. The results of our empirical study indicate that social security entitlements of employees have a significant negative influence on the level of early-stage entrepreneurship at the macro level. However, the results of our study do not support the hypothesis that the relative level of social security benefits for self-employed, compared to that for employees, has an additional impact on entrepreneurial activity.

Suggested Citation

  • André van Stel & Peter Brouwer & Sander Wennekers & Jolanda Hessels, 2005. "Social security etitlements and early-stage entrepreneurial activity; an empirical analysis," Scales Research Reports N200423, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:n200423
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