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Are self-employment training programs effective? Evidence from Project GATE

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  • Michaelides, Marios
  • Benus, Jacob

Abstract

We examine the efficacy of providing self-employment training to unemployed and other individuals interested in self-employment using data from Project GATE. This experimental design program offered self-employment training services to a random sample of individuals who expressed a strong interest in self-employment. We find that Project GATE was effective in helping unemployed participants to start their own business, leading to significant impacts in self-employment and overall employment soon after program entry. The program also helped unemployed participants remain self-employed and avoid unemployment even five years after program entry. However, the program was not effective in improving the labor market outcomes of participants who were not unemployed.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 19 (2012)
Issue (Month): 5 ()
Pages: 695-705

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Handle: RePEc:eee:labeco:v:19:y:2012:i:5:p:695-705

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Self-employment; Entrepreneurship; Small business; Unemployment; Training; Project GATE;

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Citations

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Cited by:
  1. Fairlie, Robert W. & Karlan, Dean & Zinman, Jonathan, 2014. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," IZA Discussion Papers 8367, Institute for the Study of Labor (IZA).
  2. Wim Naudé, 2011. "Foreign Aid for Innovation: The Missing Ingredient in Private Sector Development?," Working Papers 2011/35, Maastricht School of Management.
  3. Howard Aldrich & Tiantian Yang, 2014. "How do entrepreneurs know what to do? learning and organizing in new ventures," Journal of Evolutionary Economics, Springer, vol. 24(1), pages 59-82, January.
  4. Karlan, Dean, 2012. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," Working Papers 95, Yale University, Department of Economics.
  5. Michaelides, Marios, 2010. "Race and self-employment: The role of training programs, self-employment background, and access to financing," MPRA Paper 20884, University Library of Munich, Germany.

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