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

39 Pages Posted: 21 Feb 2012 Last revised: 29 Mar 2012

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

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: January 25, 2012

Abstract

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.

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

Suggested Citation

Karlan, Dean S. and Fairlie, Robert W. and Zinman, Jonathan, Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training (January 25, 2012). Yale Economics Department Working Paper No. 95. Available at SSRN: https://ssrn.com/abstract=2008446 or http://dx.doi.org/10.2139/ssrn.2008446

Dean S. Karlan (Contact Author)

Yale University ( email )

Box 208269
New Haven, CT 06520-8269
United States

Innovations for Poverty Action ( email )

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

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

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

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

Robert W. Fairlie

University of California, Santa Cruz - Department of Economics ( email )

Department of Economics
Engineering 2 Bldg.
Santa Cruz, CA 95064
United States
831-459-3332 (Phone)

HOME PAGE: http://econ.ucsc.edu/~fairlie/

Jonathan Zinman

Dartmouth College ( email )

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

HOME PAGE: http://www.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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