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).

Business startups, Entrepreneurship, Unemployment benefits
dx.doi.org/10.1016/j.econlet.2009.02.002, hdl.handle.net/1765/16047
ERIM Article Series (EAS)
Economics Letters
Erasmus Research Institute of Management

Koellinger, Ph.D, & Minniti, M. (2009). Unemployment benefits crowd out nascent entrepreneurial activity. Economics Letters, 103(2), 96–98. doi:10.1016/j.econlet.2009.02.002