Stumbling Blocks or Stepping Stones: The Effects of Promoting (Youth) Entrepreneurship
This study uses administrative data to evaluate a 2013 Spanish reform that subsidized social security contributions for young self-employed workers. Eligibility was granted to men younger than 30 and women younger than 35 with an active self-employment spell in February 2013. The policy did not extend self-employment duration or increase overall employment probabilities. Male entrepreneurs experienced no significant earnings changes, while women who returned to dependent employment within two years gained about 14% in monthly wages, mainly through transitions into higher-paying service sector jobs. These gains were concentrated among women at higher risk of unemployment, such as mothers and those in rural areas.