Did the unemployment benefits extension between 2009–2013 deter entrepreneurship in the US? Some evidence and a model of unemployment benefits and entrepreneurship

The Study of Unemployment in Business Perspective in Indonesia

“…Between 2008 and 2010, the US lost 246,000 corporate employers and 992,000 self-employed enterprises, most of which were small businesses. The great recession disproportionately impacted these sectors because they relied more on credit, and it was more difficult for them to save (Jia, 2023). The 2007-2008 financial crisis severely weakened America's entrepreneurial sector, and the rate of business formation remained low until 2014.…”

“…The 2007-2008 financial crisis severely weakened America's entrepreneurial sector, and the rate of business formation remained low until 2014. A study conducted by Jia (2023) empirically assessed whether extensions of unemployment benefits unemployment benefit (EUB) contributes to delays in entrepreneurship recovery. The researcher then introduces a general equilibrium job choice model of unemployment benefits and entrepreneurship and uses sharp discontinuities and statewide variations in the maximum duration of benefits at the end of 2013 to identify the negative impact of EUB on startups which are currently angered by today's youth.…”

“…In second place is Indonesia with a projected unemployment rate of 5.3%. Reducing the number of jobs and the formation of new businesses can also be affected by the many forms of assistance programs provided by the government (Jia, 2023) confined to a small geographic area, show that there is a loss due to ongoing uncertainty due to the pandemic (Barwick et al, 2020).…”