Post-Program Self-Employment Transition
Public works program participants worked 16 percent more days in self-employment compared to non-participants, measured more than a year after program completion.
Tag
self_employment
2 cards
Tag
2 cards
Public works program participants worked 16 percent more days in self-employment compared to non-participants, measured more than a year after program completion.
Winning a 1M SEK windfall reduces self-employment income by 0.051 SEK per 100 SEK won (p = 0.088), representing a 7.72% reduction relative to baseline mean self-employment income (6,598 SEK), which is a larger proportional drop than wage earnings (-5.49%); self-employment participation drops by 0.139 percentage points per 1M SEK won (p = 0.491), contradicting theories that liquidity shocks promote entrepreneurial entry.