The post-reform effectiveness of the new German start-up subsidy for the unemployed

Abstract

"The current German start-up subsidy for unemployed individuals underwent a major reform in 2011 that altered key parameters of the program, leading to ambiguous ex ante predictions on the post-reform effectiveness of the program, making a new evaluation necessary. In our descriptive analysis, we find that participants after the reform differ significantly from pre-reform participants in terms of important characteristics and subsequent labor market performance. Our causal analysis reveals positive and sizable treatment effects on the treated regarding employment and income that are larger effects than what was estimated for the pre-reform program. Potential reasons for this are discussed." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

Cite article

Bellmann, L., Caliendo, M. & Tübbicke, S. (2018): The post-reform effectiveness of the new German start-up subsidy for the unemployed. In: Labour, Vol. 32, No. 3, p. 293-319. DOI:10.1111/labr.12126