Turning Unemployment into Self-Employment: Effectiveness of Two Start-Up Programmes*

27 Pages Posted: 6 May 2008

See all articles by Hans J. Baumgartner

Hans J. Baumgartner

DIW Berlin, German Institute for Economic Research

Marco Caliendo

University of Potsdam; Institute for the Study of Labor (IZA)

Date Written: 0000

Abstract

Turning unemployment into self-employment has become a major focus of German active labour market policy (ALMP) in recent years. If effective, this would not only reduce Germany's persistently high unemployment rate, but also increase its notoriously low self-employment rate. Empirical evidence on the effectiveness of such programmes is scarce. We evaluate the effectiveness of two start-up programmes for the unemployed, where we include the probability of being employed, the probability of being unemployed and personal income as outcome variables. Our results show that at the end of the observation period, both programmes are effective. The considerable positive effects present a stark contrast to findings from evaluations of other German ALMP programmes in recent years. Hence, ALMP programmes aimed at moving the unemployed into self-employment may prove to be among the most effective, both in Germany and elsewhere.

Suggested Citation

Baumgartner, Hans J. and Caliendo, Marco, Turning Unemployment into Self-Employment: Effectiveness of Two Start-Up Programmes* (0000). Oxford Bulletin of Economics and Statistics, Vol. 70, Issue 3, pp. 347-373, June 2008, Available at SSRN: https://ssrn.com/abstract=1128395 or http://dx.doi.org/10.1111/j.1468-0084.2008.00505.x

Hans J. Baumgartner (Contact Author)

DIW Berlin, German Institute for Economic Research ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

Marco Caliendo

University of Potsdam ( email )

August-Bebel Strasse 89
Potsdam, 14482
Germany
+49(0)331/9773225 (Phone)
+49(0)331/9773210 (Fax)

HOME PAGE: http://www.uni-potsdam.de/en/empwifo/news.html

Institute for the Study of Labor (IZA) ( email )

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Bonn, D-53072
Germany

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