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Can Entrepreneurial Activity be Taught? Quasi-Experimental Evidence from Central America

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  • Klinger, Bailey
  • Schündeln, Matthias
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    Abstract

    Summary Business training is a widely used development tool, yet little is known about its impact. We study the effects of such a business training program held in Central America. To deal with endogenous selection into the training program, we use a regression discontinuity design, exploiting the fact that a fixed number of applicants are taken into the training program based on a pre-training score. Business training significantly increases the probability that an applicant to the workshop starts a business or expands an existing business. Results also suggest gender heterogeneity as well as the presence of financial constraints.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 39 (2011)
    Issue (Month): 9 (September)
    Pages: 1592-1610

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    Handle: RePEc:eee:wdevel:v:39:y:2011:i:9:p:1592-1610

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

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    Keywords: entrepreneurship business training regression discontinuity design Central America El Salvador;

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    Cited by:
    1. Miller, Margaret & Reichelstein, Julia & Salas, Christian & Zia, Bilal, 2014. "Can you help someone become financially capable ? a meta-analysis of the literature," Policy Research Working Paper Series 6745, The World Bank.
    2. Peralta, Maria Alexandra & Swinton, Scott M. & Maredia, Mywish K., 2011. "Accounting for selection bias in impact analysis of a rural development program: An application using propensity score matching," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126398, International Association of Agricultural Economists.
    3. Espen Villanger, 2012. "Caste discrimination and barriers to microenterprise growth in Nepal," CMI Working Papers 9, CMI (Chr. Michelsen Institute), Bergen, Norway.
    4. Beaman, Lori & Magruder, Jeremy & Robinson, Jonathan, 2014. "Minding small change among small firms in Kenya," Journal of Development Economics, Elsevier, vol. 108(C), pages 69-86.

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