Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training
Dean S. Karlan
Yale University; Innovations for Poverty Action; Massachusetts Institute of Technology (MIT) - Abdul Latif Jameel Poverty Action Lab; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)
Robert W. Fairlie
University of California, Santa Cruz - Department of Economics
Dartmouth College; Innovations for Poverty Action; Jameel Poverty Action Lab; National Bureau of Economic Research (NBER)
January 25, 2012
Yale Economics Department Working Paper No. 95
We use randomized program offers and multiple follow-up survey waves to examine the effects of entrepreneurship training on a broad set of outcomes. Training increases short-run business ownership and employment, but there is no evidence of broader or longer-run effects. We also test whether training mitigates market frictions by estimating heterogeneous treatment effects. Training does not have strong effects (in either relative or absolute terms) on those most likely to face credit or human capital constraints, or labor market discrimination. Training does have a relatively strong short-run effect on business ownership for those unemployed at baseline, but not at other horizons or for other outcomes.
Number of Pages in PDF File: 39
Keywords: Healthcare, Entrepreneurship, Program evaluation, Unemployment insurance, Small and medium enterprise, Job training, Entrepreneurship training, Labor supply
JEL Classification: D04, D14, D22, H32, H43, I38, J21, J24
Date posted: February 21, 2012 ; Last revised: March 29, 2012
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