Entrepreneurship, Labor Market Mobility and the Role of Entrepreneurial Insurance

Gaillard, Alexandre and Kankanamge, Sumudu (2018) Entrepreneurship, Labor Market Mobility and the Role of Entrepreneurial Insurance. TSE Working Paper, n. 18-929, Toulouse

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Official URL: http://tse-fr.eu/pub/32738


This paper introduces a quantitative model with risky entrepreneurship and search frictions matching the occupational flows between entrepreneurship, paid-employment, and unemployment. We account for the general shape of these flows and key entrepreneurial and labor market features based mostly on micro CPS and SCF data. Using this model, we show that an insurance providing Self-Employment Assistance (SEA) policy mitigates the bias disfavoring self-employment inherent in unemployment insurance programs. Moreover, ability-dependent SEA programs select more productive and wealthier new entrepreneurs out of unemployment. Finally, we show that the interaction between UI design and SEA programs has a significant impact on entrepreneurship.

Item Type: Monograph (Working Paper)
Language: English
Date: June 2018
Place of Publication: Toulouse
Uncontrolled Keywords: entrepreneurship, labor market mobility, unemployment, insurance, SEA
JEL codes: E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
E61 - Policy Objectives; Policy Designs and Consistency; Policy Coordination
J68 - Public Policy
Divisions: TSE-R (Toulouse)
Institution: University Toulouse1 Capitole
Site: UT1
Date Deposited: 22 Jun 2018 15:24
Last Modified: 15 May 2019 08:23
OAI ID: oai:tse-fr.eu:32738
URI: http://publications.ut-capitole.fr/id/eprint/26098

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