Political Options and Future Research

Abstract

This study provided an evaluation of bridging allowance at the individual as well as at the firm level. For Germany analyses concerning the transition from unemployment to self-employment and its subsidisation are rather scarce up to date. Nevertheless, it is important to evaluate firm start-ups by the unemployed since about 1.5 billion DM are spent on bridging allowance yearly. As a consequence of this extensive subsidisation nearly one fifth of the new self-employed are out of unemployment. The aim of bridging allowance is to reduce unemployment by regaining employment for the subsidised individuals through self-employment and by creating new jobs through the newly founded firms.