Working Paper: CEPR ID: DP8823
Authors: Robert W. Fairlie; Dean S. Karlan; Jonathan Zinman
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: Entrepreneurship training; Market frictions; Subsidized programs
JEL Codes: C68; C72; D58; Q54
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Training (M53) | Short-run business ownership (M13) |
| Training (M53) | Overall employment (J23) |
| Training (M53) | Business performance (L25) |
| Training (M53) | Household income (D19) |
| Training (M53) | Work satisfaction (J28) |
| Training (for unemployed) (M53) | Short-run business ownership (M13) |
| Training (M53) | Long-term business ownership (L26) |