Abstract

Since progress in welfare states’ construction comes with availability of optional income sources for people at risk such as unemployed, it may affect their choice to return or not into job market for economic reasons consequently, their decisions of involvement in entrepreneurship. In so far, the choices countries make to protect their citizens from socio-economic risks are susceptible to affect the aggregate entrepreneurial dynamism. Regarding this relation between the distribution of optional income and aggregate decisions to return into job market, the bulk of existing contributions have investigated wage employment occulting entrepreneurship. Unemployed people can make the choice for a status of employer or employee; it is therefore a loss to have dearth of knowledge on how, welfare state generosity (the benefit people received from the State when unemployed) affects their decisions to be involved as entrepreneur. This paper is interested, in the degree that unemployed people benefiting from welfare state packages are amenable to undertaking entrepreneurship, with emphasis on impact that this generosity has on types and rates of aggregate entrepreneurship.

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