Working Paper: NBER ID: w17804
Authors: Robert W. Fairlie; Dean Karlan; Jonathan Zinman
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.
Keywords: entrepreneurship training; randomized control trial; business ownership; labor market; credit constraints
JEL Codes: D04; D14; D22; H32; H43; I38; J21; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Entrepreneurship training (L26) | Business ownership (L26) |
| Entrepreneurship training (L26) | Overall employment (J23) |
| Business ownership (short run) (D22) | Business ownership (long run) (L26) |
| Entrepreneurship training (unemployed individuals) (L26) | Business ownership (L26) |
| Entrepreneurship training (L26) | No average treatment effects on business performance (L25) |
| Entrepreneurship training (L26) | No average treatment effects on household income (H31) |
| Entrepreneurship training (L26) | No average treatment effects on work satisfaction (J29) |