Severance pay stifles entrepreneurial employees, notice period boosts self-employment opportunities.
Labor laws affect how many people start their own businesses. This study looked at how different parts of these laws impact whether someone becomes an entrepreneur or works for someone else. They found that getting money when you leave a job makes people less likely to start their own business, while having time to find a new job makes them more likely to start a business. The opposite is true for people who are already self-employed.