Self-Employment as a Reemployment Option: Demonstration Results and National Legislation. Unemployment Insurance Occasional Paper 94-3.

The first and longest section of this publication is a comparative analysis summarizing the impacts of the two Unemployment Insurance (UI) Self-Employment Demonstration Projects in Washington State and Massachusetts. Based on the first wave of post-project follow-up surveys, this evaluation report provides results on the net impacts of each project on the following: business formation and survival rates; participants' employment and earnings from both self-employment and wage and salary employment; participants' duration of unemployment and receipt of UI benefits; and job creation. In the Washington and Massachusetts demonstrations, self-employment assistance promoted rapid reemployment of project participants, directly increased job creation, and significantly increased participants' total employment. One additional result is reported for the Massachusetts demonstration: self-employment assistance significantly increased total earnings of participants. The second part of the publication focuses on the recent national legislation authorizing self-employment assistance (SEA) programs. This section includes the text of the legislation itself, North American Free Trade Agreement Implementation Act SEA Programs, and a Department of Labor program letter providing guidance to the states in developing their SEA program. A listing of 80 papers in the UI Occasional Paper Series is appended. (YLB)