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Entrepreneurship Training and Self-Employment among University Graduates: Evidence from a Randomized Trial in Tunisia

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Author Info

  • Premand, Patrick

    ()
    (World Bank)

  • Brodmann, Stefanie

    ()
    (World Bank)

  • Almeida, Rita K.

    ()
    (World Bank)

  • Grun, Rebekka

    ()
    (World Bank)

  • Barouni, Mahdi

    (CRES, République Tunisienne)

Abstract

In economies characterized by low labor demand and high rates of youth unemployment, entrepreneurship training has the potential to enable youth to gain skills and create their own jobs. This paper presents experimental evidence on a new entrepreneurship track that provides business training and personalized coaching to university students in Tunisia. Undergraduates in the final year of licence appliquée were given the opportunity to graduate with a business plan instead of following the standard curriculum. This paper relies on randomized assignment of the entrepreneurship track to identify impacts on labor market outcomes one year after graduation. The analysis finds that the entrepreneurship track was effective in increasing self-employment among applicants, but that the effects are small in absolute terms. In addition, the employment rate among participants remains unchanged, pointing to a partial substitution from wage employment to self-employment. The evidence shows that the program fostered business skills, expanded networks, and affected a range of behavioral skills. Participation in the entrepreneurship track also heightened graduates' optimism toward the future shortly after the Tunisian revolution.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7079.

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Length: 39 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:iza:izadps:dp7079

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Keywords: youth employment; self-employment; entrepreneurship training; program evaluation; behavioral skills; soft skills;

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References

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  1. Abhijit V. Banerjee & Esther Duflo, 2008. "What Is Middle Class about the Middle Classes around the World?," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 3-28, Spring.
  2. Douglas Gollin, 2001. "Getting Income Shares Right," Department of Economics Working Papers 2001-11, Department of Economics, Williams College.
  3. Mathilde Almlund & Angela Lee Duckworth & James J. Heckman & Tim D. Kautz, 2011. "Personality Psychology and Economics," NBER Working Papers 16822, National Bureau of Economic Research, Inc.
  4. World Bank, 2012. "World Development Report 2013," World Bank Publications, The World Bank, number 11843.
  5. Deborah Cobb-Clark & Michelle Tan, 2009. "Noncognitive Skills, Occupational Attainment, and Relative Wages," CEPR Discussion Papers 612, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  6. Almeida, Rita & Arbelaez, Juliana & Honorati, Maddalena & Kuddo, Arvo & Lohmann, Tanja & Ovadiya, Mirey & Pop, Lucian & Puerta, Maria Laura Sanchez & Weber, Michael, 2012. "Improving access to jobs and earnings opportunities : the role of activation and graduation policies in developing countries," Social Protection Discussion Papers 67610, The World Bank.
  7. Almeida, Rita & Galasso, Emanuela, 2007. "Jump-starting self-employment ? Evidence among welfare participants in Argentina," Policy Research Working Paper Series 4270, The World Bank.
  8. Orazio Attanasio & Adriana Kugler & Costas Meghir, 2011. "Subsidizing Vocational Training for Disadvantaged Youth in Colombia: Evidence from a Randomized Trial," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 188-220, July.
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Cited by:
  1. Cho, Yoonyoung & Honorati, Maddalena, 2013. "Entrepreneurship programs in developing countries : a meta regression analysis," Policy Research Working Paper Series 6402, The World Bank.
  2. Quatraro, Francesco & Vivarelli, Marco, 2013. "Entrepreneurship In A Developing Country Context," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201314, University of Turin.
  3. Francesco Quatraro & Marco Vivarelli, 2013. "Entry and Post-Entry Dynamics in Developing Countries," GREDEG Working Papers 2013-20, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  4. Roberta Gatti & Matteo Morgandi & Rebekka Grun & Stefanie Brodmann & Diego Angel-Urdinola & Juan Manuel Moreno & Daniela Marotta & Marc Schiffbauer & Elizabeth Mata Lorenzo, 2013. "Jobs for Shared Prosperity : Time for Action in the Middle East and North Africa," World Bank Publications, The World Bank, number 13284.
  5. Honorati, Maddalena & McArdle, Thomas P, 2013. "The nuts and bolts of designing and implementing training programs in developing countries," Social Protection Discussion Papers 78980, The World Bank.
  6. Quatraro, Francesco & Vivarelli, Marco, 2013. "Drivers of Entrepreneurship and Post-Entry Performance of Newborn Firms in Developing Countries," IZA Discussion Papers 7436, Institute for the Study of Labor (IZA).
  7. Stijn Broecke, 2013. "Tackling graduate unemployment in North Africa through employment subsidies: A look at the SIVP programme in Tunisia," IZA Journal of Labor Policy, Springer, vol. 2(1), pages 1-19, December.

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