On the Origins of Entrepreneurship: Evidence from Sibling Correlations

Lindquist, Matthew J.; Sol, Joeri; Praag, C. Mirjam van; Vladasel, Theodor

doi:10.2139/ssrn.2861023

Cited by 2 publications

(1 citation statement)

References 92 publications

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“…About 5% of participants were also already self-employed before the start of their unemployment spell, whereas this was only true for 1.2% of the pool of comparison individuals. With respect to intergenerational transmission, participants are more likely to have parents who have been self-employed, which is named as one of the key drivers for becoming self-employed in the entrepreneurship literature (Lindquist et al, 2016). Moreover, participants and comparison individuals significantly differ with respect to a variety of personality traits and preferences.…”

Section: The Program Theory and Datamentioning

confidence: 99%

Do Start-Up Subsidies for the Unemployed Affect Participants’ Well-Being? A Rigorous Look at (Un-)Intended Consequences of Labor Market Policies

Caliendo

Tübbicke

2020

Eval Rev

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Background: The literature on start-up subsidies (SUS) for the unemployed finds positive effects on objective outcome measures such as employment or income. However, little is known about effects on subjective well-being of participants. Knowledge about this is especially important because subsidizing the transition into self-employment may have unintended adverse effects on participants’ well-being due to its risky nature and lower social security protection, especially in the long run. Objective: We study the long-term effects of SUS on subjective outcome indicators of well-being, as measured by the participants’ satisfaction in different domains. This extends previous analyses of the current German SUS program (“Gründungszuschuss”) that focused on objective outcomes—such as employment and income—and allows us to make a more complete judgment about the overall effects of SUS at the individual level. Research design: Having access to linked administrative-survey data providing us with rich information on pretreatment characteristics, we base our analysis on the conditional independence assumption and use propensity score matching to estimate causal effects within the potential outcomes framework. We perform several sensitivity analyses to inspect the robustness of our findings. Results: We find long-term positive effects on job satisfaction but negative effects on individuals’ satisfaction with their social security situation. Supplementary findings suggest that the negative effect on satisfaction with social security may be driven by negative effects on unemployment and retirement insurance coverage. Our heterogeneity analysis reveals substantial variation in effects across gender, age groups, and skill levels. Estimates are highly robust.

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Section: The Program Theory and Datamentioning

confidence: 99%