From Unemployed to Self-Employed: Analysis of Treatment Effects of a Dutch Self-Employment Programme

Abstract

This paper evaluates the effectiveness of a programme that aims to activate welfare recipients to become self-employed. We use unique administrative data which contain applicants for a self-employment programme between 2007 and 2010. We examine the long-term effects of the programme on people’s welfare recipience, employment and income until 8 years after they applied to the programme. The estimations show positive long-term effects of being accepted into the programme. It seems that even applying to the programme and subsequently being rejected also had positive employment effects. This was probably due to the training and guidance the applicants received while writing a business plan, which was a prerequisite to participating in the programme. Moreover, a cost–benefit analysis showed that the programme is cost-effective.