Unemployment Benefits and Entrepreneurship

被引:4
|
作者
Beladi, Hamid [1 ]
Kar, Saibal [2 ,3 ]
机构
[1] Univ Texas San Antonio, San Antonio, TX 78249 USA
[2] Ctr Studies Social Sci, Kolkata, W Bengal, India
[3] Inst Study Labor IZA, Bonn, Germany
关键词
M13; J65; J23; SELF-EMPLOYMENT; RISK;
D O I
10.1111/jere.12023
中图分类号
F [经济];
学科分类号
02 ;
摘要
Several recent empirical papers show that unemployment benefits crowd out nascent entrepreneurs. In the present paper provide theoretical support in favour of this interesting result. Over fairly general preference patterns we obtain a measure of the opportunity cost of entrepreneurs in the presence of unemployment benefits and derive conditions under which potential entrepreneurs suffer as unemployment benefits rise. We formulate a clear transmission mechanism in the labour market that links unemployment benefits to occupational choice for a group of risk-averse individuals.
引用
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页码:122 / 128
页数:7
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