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Entrepreneurship training and self-employment among university graduates : evidence from a randomized trial in Tunisia

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  • Premand, Patrick
  • Brodmann, Stefanie
  • Almeida, Rita
  • Grun, Rebekka
  • Barouni, Mahdi

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 appliquee 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 The World Bank in its series Policy Research Working Paper Series with number 6285.

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Date of creation: 01 Dec 2012
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Handle: RePEc:wbk:wbrwps:6285

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Keywords: Tertiary Education; Labor Markets; Skills Development and Labor Force Training; Employment and Unemployment; Small and Medium Size Enterprises;

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  1. Banerjee, Abhijit & Duflo, Esther, 2007. "What is Middle Class about the Middle Classes Around the World?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6613, C.E.P.R. Discussion Papers.
  2. 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, American Economic Association, vol. 3(3), pages 188-220, July.
  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. Cobb-Clark, Deborah A. & Tan, Michelle, 2009. "Noncognitive Skills, Occupational Attainment, and Relative Wages," IZA Discussion Papers 4289, Institute for the Study of Labor (IZA).
  5. 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.
  6. Douglas Gollin, 2001. "Getting Income Shares Right," Department of Economics Working Papers, Department of Economics, Williams College 2001-11, Department of Economics, Williams College.
  7. Almeida, Rita K. & Galasso, Emanuela, 2007. "Jump-Starting Self-Employment? Evidence among Welfare Participants in Argentina," IZA Discussion Papers 2902, Institute for the Study of Labor (IZA).
  8. World Bank, 2012. "World Development Report 2013," World Bank Publications, The World Bank, number 11843, August.
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Cited by:
  1. 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).
  2. Cho, Yoonyoung & Honorati, Maddalena, 2013. "Entrepreneurship programs in developing countries : a meta regression analysis," Social Protection Discussion Papers 77168, The World Bank.
  3. 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.
  4. 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.
  5. 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, August.
  6. 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, Springer, vol. 2(1), pages 1-19, December.
  7. Francesco Quatraro & Marco Vivarelli, 2013. "Entry and Post-Entry Dynamics in Developing Countries," GREDEG Working Papers, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis 2013-20, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.

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