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

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  • Michaelides, Marios
  • Benus, Jacob

Abstract

In 2002, the U.S. Department of Labor and the Small Business Administration implemented Project GATE, an experimental demonstration program designed to provide free self-employment assistance to individuals interested in starting their own business. This paper uses data from Project GATE to examine the efficacy of public self-employment training programs in the modern U.S. economy. Our analyses show that GATE led to significant improvements in the post-training outcomes of treatment group participants who were unemployed at the time of application. Particularly, GATE had a significant positive impact on new business starts and sustainability for unemployed participants five years after random assignment. For those who were unemployed at random assignment, GATE also led to higher employment likelihood and higher total earnings five years after random assignment. GATE had no impact, however, for participants who were employed, self-employed, or out of the labor force at the time of application.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 20880.

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Date of creation: 01 Feb 2010
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Handle: RePEc:pra:mprapa:20880

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Keywords: self-employment; small business; unemployment; workforce development; SEA; Project GATE;

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References

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Cited by:
  1. Wim Naudé, 2011. "Foreign Aid for Innovation: The Missing Ingredient in Private Sector Development?," Working Papers 2011/35, Maastricht School of Management.
  2. 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.
  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. 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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