Starting Business Out of Unemployment: How Do Supported Self-employed Individuals Perform?

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Ondřej Dvouletý
Keyword(s):  
Economic Activity ◽  
Public Support ◽  
Well Being ◽  
Active Labour Market Policy ◽  
Firm Level ◽  
The Czech Republic ◽  
Start Up ◽  
Level Data ◽  
Active Labour ◽  
And Performance

AbstractThe study empirically contributes to the discussion on the effects of start-up subsidies for unemployed individuals as a part of the active labour market policy. The article provides insights into the survival and performance of the subsidized businesses in the Czech Republic. The study follows up cohorts of self-employed individuals that were supported during years 2009–2017. The obtained findings show that a vast majority of the supported businesses were still officially active 2 years after the allocation of the start-up subsidy, and even later. The firm-level data further relieve that most of the individuals starting a business out of unemployment stay solo (only less than four per cent of self-employed individuals employ besides themselves at least one employee) and the economic outcomes of the subsidized businesses, measured as annual turnover, are rather modest. The empirical results further showed that higher intensity of public support is negatively associated with business closure and positively with employment and turnover categories. The study concludes that the start-up subsidy for unemployed succeeded in activating unemployed individuals to pursue an economic activity, although further research concerning other outcome variables such as personal income, job satisfaction and well-being is needed.

scholarly journals Fear the Walking Dead? Incidence and Effects of Zombie Firms in Europe

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Issam Hallak ◽  
Péter Harasztosi ◽  
Sebastian Schich
Keyword(s):  
Czech Republic ◽  
Economic Activity ◽  
Policy Implication ◽  
European Countries ◽  
Firm Level ◽  
The Czech Republic ◽  
Corporate Capital ◽  
The Walking Dead ◽  
Level Data ◽  
Firm Level Data

One explanation for the observed lack of economic dynamism in Europe is that so-called zombie firms are spreading and that they crowd out the growth of other, potentially more “lively”, companies. Zombie firms are firms that apparently are unable to repay their debt and yet, they continue operating. The report describes estimates for 2010 and 2013 of the incidence of zombie firms across 19 European countries using firm-level data for more than one million companies. Importantly, it uses three alternative definitions of what constitutes a zombie firm to ensure robustness of estimates. The report finds that zombie firms are spreading in Europe, with the estimated incidence for 2013 being higher than for 2010. It also identifies considerable differences across countries. Zombie firm shares as of overall corporate capital are particularly high in Greece and Spain, but low in the Czech Republic and Slovakia. Distinguish among firms in terms of size and age, the report finds that larger and older firms, as compared to relatively smaller and younger firms, are more likely to be zombie firms. The report also finds that the growth of zombie firms in terms of employment crowds out the growth of other, non-zombie firms, especially young ones. Thus, one policy implication is that, greater economic activity is achieved by allowing zombie firms to exit the market.

State Intervention and Mental Well-being Among the Unemployed

2001 ◽  
Vol 30 (1) ◽  
pp. 57-80 ◽  
Author(s):  
MATTIAS STRANDH
Keyword(s):  
Well Being ◽  
State Intervention ◽  
Unemployment Benefit ◽  
Unemployment Benefits ◽  
Active Labour Market Policy ◽  
Active Labour ◽  
Policy Measures ◽  
The Unemployed ◽  
Mental Well Being ◽  
Positive Effect

Although the relationship between unemployment and poor mental well-being has long been an area of interest within behavioural science, the role of state intervention in the unemployment situation has not been thoroughly investigated. This article investigates how unemployment benefit systems and active labour market policy measures affect mental well-being among the unemployed in Sweden. The study uses a longitudinal and nationally representative survey of 3,500 unemployed Swedes. Three different types of active labour market policy measures involving the unemployed were studied, ‘activation’, ‘vocational training’ and ‘work-place participation’ measures. Of these only involvement in ‘workplace participation’ was found to have a clearly positive effect on mental well-being among those participating. Of the two Swedish unemployment benefit systems, the more generous income replacement Unemployment Benefits and the less generous flat rate Cash Unemployment Benefits, only access to income replacement Unemployment Benefits was found to mediate the mental well-being impact of unemployment. The positive effect of access to income replacement Unemployment Benefits was further accentuated when unemployment was prolonged. Those with access to this benefit system seemed to suffer no further deterioration of mental well-being, while the mental well-being of the rest of the unemployed further deteriorated.

Who Gets the Money?

2010 ◽  
Vol 230 (5) ◽  
Author(s):  
Birgit Aschhoff
Keyword(s):  
Public Funding ◽  
Public Support ◽  
Service Firms ◽  
Multivariate Approach ◽  
Firm Level ◽  
The Past ◽  
Level Data ◽  
Funding Scheme ◽  
Knowledge Intensive ◽  
High Level

SummaryIn this paper I analyze which firms receive R&D project grants and how this public support evolves over time by considering in particular firm’s previous participation. The extent of the dynamics of firms’ participation within the funding scheme gives information about the openness of the scheme towards non-participating firms. Using firm-level data on German manufacturing and knowledge-intensive service firms, it turns out that participation in the funding scheme shows a rather high level of continuity. This is also confirmed by applying a multivariate approach. Firms which received funding in the past are more likely to be selected for public funding again. Moreover, a firm’s size and knowledge capabilities increase the probability of entering the scheme.

scholarly journals Firm Sorting and Agglomeration

2018 ◽  
Vol 108 (11) ◽  
pp. 3117-3153 ◽  
Author(s):  
Cecile Gaubert
Keyword(s):  
General Equilibrium ◽  
Economic Activity ◽  
Heterogeneous Firms ◽  
Agglomeration Economies ◽  
Firm Level ◽  
Large Cities ◽  
French Firm ◽  
Level Data ◽  
Firm Level Data ◽  
Aggregate Effects

To account for the uneven distribution of economic activity in space, I propose a theory of the location choices of heterogeneous firms in a variety of sectors across cities. In equilibrium, the distribution of city sizes and the sorting patterns of firms are uniquely determined and affect aggregate TFP and welfare. I estimate the model using French firm-level data and find that nearly half of the productivity advantage of large cities is due to firm sorting, the rest coming from agglomeration economies. I quantify the general equilibrium effects of place-based policies: policies that subsidize smaller cities have negative aggregate effects. (JEL D22, D24, R11, R32)

Firm-Level Economic Activity Before, During, and After Local Events: A Case Study

2020 ◽  
Vol 21 (4) ◽  
pp. 327-334 ◽  
Author(s):  
Craig A. Depken ◽  
Benjamin L. Fore
Keyword(s):  
Economic Activity ◽  
National Football League ◽  
Future Research ◽  
Firm Level ◽  
Level Data ◽  
National Convention ◽  
Firm Level Data ◽  
Convention Center ◽  
Center City

This case study investigates how various sporting and cultural events impact economic activity at a single full-service restaurant in center-city Charlotte, NC. We find no evidence of significant changes in daily revenue, customers served, and revenue per customer on the day before, day of, and day after many of the events. The exceptions are National Football League (NFL) home games, swimming events, events at the Charlotte Convention Center, the 2012 Democratic National Convention, NASCAR races, PGA tournaments, and entertainment events at the Spectrum Center. The results invite future research using firm-level data to better understand the disparate impact of events on business enterprises.

scholarly journals On the role and perspectives of the labour market policy in the Czech republic

1996 ◽  
Vol 5 (1) ◽  
Author(s):  
Tomáš Sirovátka
Keyword(s):  
Czech Republic ◽  
Labour Market ◽  
Labour Market Policy ◽  
Government Budget ◽  
Active Labour Market Policy ◽  
The Czech Republic ◽  
Social Unrest ◽  
Market Policy ◽  
Active Labour ◽  
Communist Countries

A low unemployment rate, which unlike the other post-communist countries the Czech Republic has maintained, is one of the conditions for the sustainability of the economic reform. Unemployment is putting little pressure on government budget, and is not producing social unrest. The complex of economic and social factors that contributed to the Czech paradox of low unemployment has more than once been assessed. Here however, we want to concentrate on the role which active labour market policy has played, and to evaluate its prospects in the light of present and expected developments, both domestically and in Europe.

Capital structure dynamics among SMEs: Swedish empirical evidence

2016 ◽  
Vol 17 (2) ◽  
pp. 245-260 ◽  
Author(s):  
Darush Yazdanfar ◽  
Peter Öhman
Keyword(s):  
Life Cycle ◽  
Capital Structure ◽  
Equity Capital ◽  
Firm Level ◽  
Content Type ◽  
Life Cycle Stages ◽  
Start Up ◽  
Level Data ◽  
Industry Sectors ◽  
Firm Owners

Purpose This paper aims to empirically investigate the existence of dynamic capital structure among small and medium-sized enterprises (SMEs) across their life cycle stages. Design/methodology/approach The analysis examined a sample of 15,952 SMEs across five industry sectors for the 2009-2012 period. Several techniques, including ANOVA and multivariate regressions, were used to analyse firm-level data. Findings The findings suggest that start-up SMEs, on average, rely on equity capital, and that the level of equity capital increases as firms age. The short-term debt level is particularly high in early life cycle stages, decreasing later on. The long-term debt ratio is positively related to firm age, although it is low in all life cycle stages investigated. Practical implications The findings may help several parties, including firm owners, to better understand how capital structure can be related to various life cycle stages. Such an understanding may help these actors use financial resources efficiently. Originality/value To the authors’ best knowledge, little research has addressed whether there are any differences in financing patterns over the firm life cycle.

scholarly journals Political Stability, Firm Characteristics and Performance: Evidence from 6,083 Private Firms in the Middle East

2017 ◽  
Vol 13 (1) ◽  
Author(s):  
Amr Hosny
Keyword(s):  
Middle East ◽  
Political Instability ◽  
Political Stability ◽  
Private Firms ◽  
Firm Characteristics ◽  
Linear Regression Models ◽  
Firm Level ◽  
Level Data ◽  
Negative Effect ◽  
And Performance

AbstractUsing firm-level data from an EBRD/EIB/WB joint survey covering more than 6,000 private firms in eight countries in the Middle East and North Africa, this paper (i) examines the relationship between firm characteristics and their perception of the effect of political instability on their operations and (ii) tests whether political instability has had a negative effect on firm performance. Using ordered and binary probit/logit models, we find that (i) export-oriented and larger-sized firms are more likely to report political instability as a sever obstacle to their operations. Using OLS and an endogenous treatment linear regression models, we find that (ii) the perception of political instability is negatively

Risk for Depression and Psychological Well-Being in German National and State Team Athletes—Associations With Age, Gender, and Performance Level

2018 ◽  
Vol 12 (2) ◽  
pp. 160-178 ◽  
Author(s):  
Johanna Belz ◽  
Jens Kleinert ◽  
Jeannine Ohlert ◽  
Thea Rau ◽  
Marc Allroggen
Keyword(s):  
Well Being ◽  
Performance Level ◽  
Screening Tools ◽  
Adolescent Athletes ◽  
External Criterion ◽  
Psychological Well Being ◽  
Current State ◽  
Level Data ◽  
And Performance ◽  
Risk For Depression

Adolescence is a vulnerable period for the development of depression. Research on depression in athletes including adolescent athletes, however, is scarce. The purpose of the present study was to assess the risk for depression depending on the athletes’ age, gender, and performance level. Data were collected from 1,799 German national and state team athletes. The PHQ-2 and the WHO-5 were administered to assess the athletes’ risk for depression and current state of psychological well-being. Overall, 13% of the athletes were screened positive for depression and 10% for impaired well-being. Adolescents, females and athletes of junior national teams showed a higher risk for depression and/or lower well-being than other subgroups. The finding that adolescent athletes are more vulnerable to suffer from depressive symptoms than adult athletes mirrors finding in the general population. Screening tools for depression should be followed up by clinical expert interviews to provide an external criterion for the obtained results.

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