ABSTRACT
This chapter highlights the differences in point estimates are much smaller for the Start-up Subsidy than the Bridging Allowance programme. It describes causal programme effects. The chapter discusses some theoretical considerations and expectations about the impact of local economic conditions on firm characteristics and on the effectiveness of start-up programmes. It explains the institutional setting of the different start-up subsidies under scrutiny. The chapter presents the empirical analysis including data description, descriptive evidence, and the identification strategy and results of the causal analysis. A detailed analysis on possible mechanisms driving the regional effect heterogeneity reveals that estimated employment effects are primarily affected by varying labour market performance of non-participants and less by differences in terms of firm survival under different economic circumstances. The promotion of self-employment among unemployed individuals has been shown to be an effective strategy as part of active labour market policies.
