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  1. The effect of unemployment insurance benefits on (self-)employment
    two sides of the same coin?
    Published: [2021]
    Publisher:  Deutsche Bundesbank, Frankfurt am Main

    Although a meaningful percentage of firms are created out of unemployment and current active labor market policies in Europe often subsidize unemployed individuals to start their own businesses, little is known about the role of unemployment... more

    Leibniz-Institut für Wirtschaftsforschung Halle, Bibliothek
    No inter-library loan
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DS 12
    No inter-library loan

     

    Although a meaningful percentage of firms are created out of unemployment and current active labor market policies in Europe often subsidize unemployed individuals to start their own businesses, little is known about the role of unemployment insurance (UI) generosity for selfemployment. By using Spanish administrative data including previously unavailable information on self-employment, we exploit a reform-driven exogenous cut in UI benefits to identify its causal effect on general employment and decompose it into the effects on self-employment and re-employment. Exploiting a discontinuity in the UI benefit schedule which changed as a result of the 2012 Spanish labor market reform, we estimate the causal reform effects on the extensive margin of (self-)employment and on unemployment duration. We find heterogeneous effects on the extensive margin: while the job-finding rate increases, the startup rate decreases. Over different time horizons, the negative effect on self-employment (35-50%) outweighs the positive effect on employment (5-33%). Our UI benefit duration elasticity estimates indicate that reduced UI benefits extend unemployment duration for individuals transitioning into self-employment but shorten unemployment for individuals finding re-employment. Due to the reform's unintended consequences for self-employment, its general employment effect is much smaller than claimed by analyses that focus only on employment.

     

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    Source: Union catalogues
    Language: English
    Media type: Ebook
    Format: Online
    ISBN: 9783957298263
    Other identifier:
    hdl: 10419/234826
    Series: Discussion paper / Deutsche Bundesbank ; no 2021, 18
    Subjects: Social Insurance; Self-Employment; Spain; Unemployment Insurance
    Scope: 1 Online-Ressource (circa 87 Seiten), Illustrationen
  2. The effect of unemployment insurance benefits on (self-)employment
    two sides of the same coin?
    Published: 2020
    Publisher:  ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung GmbH Mannheim, Mannheim, Germany

    Although a relevant share of firms is created out of unemployment and current active labor market policies in Europe often subsidize unemployed individuals to start their own businesses, little is known about the role of unemployment insurance (UI)... more

    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DS 15
    No inter-library loan
    Universitätsbibliothek Mannheim
    No inter-library loan

     

    Although a relevant share of firms is created out of unemployment and current active labor market policies in Europe often subsidize unemployed individuals to start their own businesses, little is known about the role of unemployment insurance (UI) generosity for self-employment. By using Spanish administrative data including so far inaccessible information on self-employment, we exploit a reform-driven exogenous cut in UI benefits to identify its causal effect on general employment and decompose it into the effects on self-employment and re-employment. Exploiting a discontinuity in the UI benefit schedule which changed as a result of the 2012 Spanish labor market reform, we estimate the causal reform effects on the extensive margin of (self-)employment and on unemployment duration. We find heterogeneous effects on the extensive margin: while the job-finding rate increases, the startup rate decreases. Over different time horizons, the negative effect on self- employment (35-50%) outweighs the positive effect on employment (5-33%). Therefore, omitting self-employment as a counterfactual outcome might lead to overestimate general employment effects. Our UI benefit duration elasticity estimates indicate that reduced UI benefits extend unemployment duration for individuals transitioning into self-employment but shorten unemployment for individuals finding re-employment. These results might be relevant for the (optimal) design of UI systems.

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/226356
    Series: Discussion paper / ZEW ; no. 20, 062 (11/2020)
    Scope: 1 Online-Ressource (96 Seiten), Illustrationen
  3. Workplace connections and labor migration
    the role of information in shaping expectations
    Published: [2024]
    Publisher:  Collaborative Research Center Transregio 190, [München]

    In a context where improved employment outcomes entail relocating to a new destination, how does information from former coworkers alter workers’ labor migration decisions? We explore this question using the unique backdrop of German reunification in... more

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DS 553
    No inter-library loan

     

    In a context where improved employment outcomes entail relocating to a new destination, how does information from former coworkers alter workers’ labor migration decisions? We explore this question using the unique backdrop of German reunification in the early 1990s. For former workers of the German Democratic Republic (GDR), improving employment outcomes typically meant relocating to West Germany, which most were reluctant to do. We show that information from former GDR coworkers in West Germany significantly increased the employment probability of East Germans in West Germany. To identify these network effects, we document and exploit that GDR workers were as-good-as randomly assigned to networks by the GDR system from the perspective of the West German market economy. We then establish that the networks only trigger migration responses among East Germans whose contacts had positive work experiences in the West and were similar in their earnings potential in the market-based economy of reunified Germany. These contacts, in essence, serve as role models for the workers’ prospects in the West, leading workers to trust the advice and assessments provided and ultimately altering the expected benefits from labor migration for the specific worker.

     

    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/282181
    Series: Discussion paper / Rationality & Competition, CRC TRR 190 ; no. 490 (January 10, 2024)
    Scope: 1 Online-Ressource (circa 41 Seiten)