A country that provides strong unemployment insurance is likely to experience high rates of entrepreneurship.

Question

Quizplus · Accepted Answer

This statement is false. Research suggests that generous unemployment insurance can actually discourage entrepreneurship by providing a safety net for individuals who may otherwise start a business. In contrast, countries with lower levels of unemployment benefits may promote entrepreneurship as individuals may be more willing to take on the risk of starting a business if they do not have a secure alternative income source.

A Country That Provides Strong Unemployment Insurance Is Likely to Experience