Jump-Starting Self-Employment? Evidence Among Welfare Participants in Argentina

38 Pages Posted: 20 Apr 2016

See all articles by Emanuela Galasso

Emanuela Galasso

World Bank - Development Research Group (DECRG)

Rita Almeida

World Bank; IZA Institute of Labor Economics

Date Written: July 2007

Abstract

One important concern of governments in developing countries is on how to phase-out large safety nets programs. This paper evaluates the short run effects of one possible exit strategy, programs that promote self-employment, in Argentina. We provide evidence that a small fraction of beneficiaries were attracted by this program. Overall, potential participants to self-employment are more likely to be female household heads and more educated beneficiaries relative to the average Jefes beneficiaries. Using non-experimental methods, we show that participation in the program does affect labor supply of participants, by reducing the probability of having an outside job especially for males and increasing the total number of hours worked. However, the intervention fails to produce on average income gains to participating individuals and households in the short run. The fact that a very small subset of former welfare beneficiaries are attracted to the program, coupled with the fact that only a subset of participants (younger and more educated beneficiaries, and with previous self-employment experience) has important implications for this intervention to represent a viable exit strategy from welfare.

Keywords: Self-employment, Labor Markets, Impact evaluation, Argentina

Suggested Citation

Galasso, Emanuela and Almeida, Rita, Jump-Starting Self-Employment? Evidence Among Welfare Participants in Argentina (July 2007). World Bank Policy Research Working Paper No. 4270, IZA Discussion Paper No. 2902, Available at SSRN: https://ssrn.com/abstract=996747

Emanuela Galasso (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

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Washington, DC 20433
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202-473-3902 (Phone)
202-522-1153 (Fax)

Rita Almeida

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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