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Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training

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  • Fairlie, Robert W
  • Karlan, Dean S.
  • Zinman, Jonathan

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.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8823.

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Date of creation: Feb 2012
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Handle: RePEc:cpr:ceprdp:8823

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References

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  1. Fairlie, Robert W. & Krashinsky, Harry A., 2011. "Liquidity Constraints, Household Wealth, and Entrepreneurship Revisited," Santa Cruz Department of Economics, Working Paper Series qt6hv0m2q6, Department of Economics, UC Santa Cruz.
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Cited by:
  1. Gabriela Calderon & Jesse M. Cunha & Giacomo De Giorgi, 2013. "Business Literacy and Development: Evidence from a Randomized Controlled Trial in Rural Mexico," NBER Working Papers 19740, National Bureau of Economic Research, Inc.
  2. Laura Rosendahl Huber & Randolph Sloof & Mirjam van Praag, 2012. "The Effect of Early Entrepreneurship Education: Evidence from a Randomized Field Experiment," Tinbergen Institute Discussion Papers 12-041/3, Tinbergen Institute.

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