Behind the Gate Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training

44 Pages Posted: 3 Feb 2012 Last revised: 24 Feb 2023

See all articles by Robert W. Fairlie

Robert W. Fairlie

UCLA; National Bureau of Economic Research

Dean S. Karlan

Yale University; Northwestern University - Kellogg School of Management; Innovations for Poverty Action; Massachusetts Institute of Technology (MIT) - Abdul Latif Jameel Poverty Action Lab (J-PAL); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Jonathan Zinman

Dartmouth College; Innovations for Poverty Action; Jameel Poverty Action Lab; National Bureau of Economic Research (NBER)

Multiple version iconThere are 6 versions of this paper

Date Written: February 2012

Abstract

Various theories of market failures and targeting motivate the promotion of entrepreneurship training programs throughout the world. Using data from the largest randomized control trial ever conducted on entrepreneurship training, we examine the validity of such motivations and find that 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. On the other hand, 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. On average, training increases short-run business ownership and employment, but there is no evidence of broader or longer-run effects on business ownership, business performance or broader outcomes.

Suggested Citation

Fairlie, Robert W. and Karlan, Dean S. and Karlan, Dean S. and Zinman, Jonathan, Behind the Gate Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training (February 2012). NBER Working Paper No. w17804, Available at SSRN: https://ssrn.com/abstract=1998602

Robert W. Fairlie (Contact Author)

UCLA ( email )

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Dean S. Karlan

Yale University ( email )

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Northwestern University - Kellogg School of Management ( email )

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Innovations for Poverty Action ( email )

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United States

Massachusetts Institute of Technology (MIT) - Abdul Latif Jameel Poverty Action Lab (J-PAL) ( email )

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Cambridge, MA 02139
United States

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Jonathan Zinman

Dartmouth College ( email )

Hanover, NH 03755
United States
603-646-0075 (Phone)

HOME PAGE: http://https://sites.dartmouth.edu/jzinman/

Innovations for Poverty Action

1731 Connecticut Ave, 4th floor
New Haven, CT 20009
United States

Jameel Poverty Action Lab

E60-246
77 Massachusetts Avenue
Cambridge, MA 02139
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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