Analyzing a cross-country panel of 16 OECD countries from 2002 to 2005, we find that higher unemployment benefits crowd out nascent entrepreneurial activity. Our results hold regardless of entrepreneurial motivation (necessity or opportunity) and entrepreneurial type (imitative or innovative).

Additional Metadata
Keywords business startups, entrepreneurship, unemployment benefits
JEL Unemployment Insurance; Severance Pay; Plant Closings (jel J65), Business Administration and Business Economics; Marketing; Accounting (jel M), New Firms; Startups (jel M13), Management of Technological Innovation and R&D (jel O32)
Publisher Erasmus Research Institute of Management
Persistent URL hdl.handle.net/1765/11808
Series ERIM Report Series Research in Management
Journal ERIM report series research in management Erasmus Research Institute of Management
Citation
Koellinger, Ph.D, & Minniti, M. (2008). Unemployment Benefits Crowd Out Nascent Entrepreneurial Activity (No. ERS-2008-012-ORG). ERIM report series research in management Erasmus Research Institute of Management. Erasmus Research Institute of Management. Retrieved from http://hdl.handle.net/1765/11808