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Getting Back into the Labor Market: The Effects of Start-Up Subsidies for Unemployed Females

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  • Caliendo, Marco

    (University of Potsdam)

  • Künn, Steffen

    (Maastricht University)

Abstract

A shortage of skilled labor and low female labor market participation are problems many developed countries have to face. Besides activating inactive women, one possible solution is to support the re-integration of unemployed women. Due to female-specific labor market constraints (preferences for flexible working hours, discrimination), this is a difficult task, and the question arises whether active labor market policies (ALMP) are an appropriate tool to do so. Promoting self-employment among the unemployed might be promising. Starting their own business might give women more independence and flexibility in allocating their time to work and family. Access to long-term informative data allows us to close existing research gaps, and we investigate the impact of two start-up programs on long-run labor market and fertility outcomes of female participants. We find that start-up programs persistently integrate former unemployed women into the labor market and partly improve their income situations. The impact on fertility is less detrimental than for traditional ALMP programs.

Suggested Citation

  • Caliendo, Marco & Künn, Steffen, 2012. "Getting Back into the Labor Market: The Effects of Start-Up Subsidies for Unemployed Females," IZA Discussion Papers 6830, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6830
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    8. Marco Caliendo, 2016. "Start-up subsidies for the unemployed: Opportunities and limitations," IZA World of Labor, Institute of Labor Economics (IZA), pages 200-200, March.
    9. Ruud Gerards & Riccardo Welters, 2020. "Liquidity Constraints, Unemployed Job Search and Labour Market Outcomes," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(3), pages 625-646, June.
    10. Alic BÎRCA, 2023. "Workforce Participation in Active Labour Market Policies: A Comparative Analysis in EU Member States," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(2), pages 173-187, May.
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    12. L. Behrenz & L. Delander & J. Månsson, 2016. "Is Starting a Business a Sustainable way out of Unemployment? Treatment Effects of the Swedish Start-up Subsidy," Journal of Labor Research, Springer, vol. 37(4), pages 389-411, December.
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    15. Ulku,Hulya & Georgieva,Dorina Peteva, 2022. "Unemployment Benefits, Active Labor Market Policies, and Labor Market Outcomes : Evidence from New Global Data," Policy Research Working Paper Series 10027, The World Bank.
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    More about this item

    Keywords

    female labor force participation; evaluation; start-up subsidies; long-term effects; fertility;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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