An analysis of self-employment subsidies with duration models

The determinants of continuity of subsidized self-employment activities are studied by means of duration models in Asturias (Spain). Variables related to socio-economic characteristics of the self-employed and to subsidized businesses are included in the models. Moreover, to consider the economic situation, the regional unemployment rate has been taken into account. A general survival analysis is complemented with a competing risk model that considers two types of exits from self-employment (failure versus other reasons). The significant variables that explain survival are age, industry, whether the business is the main source of family income or not and the unemployment rate.