Does the Small Business Program Benefit Self-Employed Workers? Evidence from Nicaragua

Posted: 21 Feb 2019

See all articles by Booyuel Kim

Booyuel Kim

KDI School of Public Policy and Management

Rony Rodriguez-Ramirez

KDI School of Public Policy and Management

Hee-Seung Yang

KDI School of Public Policy and Management

Date Written: December 1, 2018

Abstract

Business and skills training programs have been a popular social policy option to promote self-employment and improve its performance in developing countries. We study the Small Business of the Family Economy (SBFE) program, a government business training program in Nicaragua designed to support self-employed workers in Nicaragua. With data from three survey rounds of the Nicaragua Living Standards Measurement Survey, we use a difference-in-differences strategy exploiting variation across time and industry in terms of eligibility to the program. Our estimates suggest that the SBFE program increases self-employed workers’ income by 21%. In particular, our results demonstrate stronger effects on female entrepreneurs and those with low educational attainment.

Keywords: business training, self-employment, small business, Nicaragua

JEL Classification: J24, O12, L26, M53

Suggested Citation

Kim, Booyuel and Rodriguez-Ramirez, Rony and Yang, Hee-Seung, Does the Small Business Program Benefit Self-Employed Workers? Evidence from Nicaragua (December 1, 2018). KDI School of Pub Policy & Management Paper . Available at SSRN: https://ssrn.com/abstract=3336383

Booyuel Kim (Contact Author)

KDI School of Public Policy and Management ( email )

P.O. Box 184
Seoul, 130-868
Korea, Republic of (South Korea)

Rony Rodriguez-Ramirez

KDI School of Public Policy and Management ( email )

263 Namsejong-ro, Sejong-si
Sejong-si, 30149
Korea, Republic of (South Korea)

HOME PAGE: http://rrmaximiliano.github.io

Hee-Seung Yang

KDI School of Public Policy and Management ( email )

P.O. Box 184
Seoul, 130-868
Korea, Republic of (South Korea)

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