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Role Models or Individual Consulting: The Impact of Personalizing Micro-entrepreneurship Training

Author

Listed:
  • Jeanne Lafortune
  • Julio Riutort
  • José Tessada

Abstract

Using a randomized experiment in Chile we study the impact role models have in the context of a training program for micro-entrepreneurs. We show that being in a group randomly chosen to be visited by a successful alumnus of the program increases household income one year after, mostly due to increased business participation and business income. We also randomized the provision of personalized "consulting sessions" vis-á-vis group sessions, and observe similar effects on income, with the role model intervention being significantly more cost effective and better suited for less experienced businesses.

Suggested Citation

  • Jeanne Lafortune & Julio Riutort & José Tessada, 2018. "Role Models or Individual Consulting: The Impact of Personalizing Micro-entrepreneurship Training," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 222-245, October.
  • Handle: RePEc:aea:aejapp:v:10:y:2018:i:4:p:222-45
    Note: DOI: 10.1257/app.20170077
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    Citations

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    Cited by:

    1. Seema Jayachandran, 2019. "Social norms as a barrier to women's employment in developing countries," WIDER Working Paper Series wp-2019-74, World Institute for Development Economic Research (UNU-WIDER).
    2. González-Uribe, Juanita & Reyes, Santiago, 2021. "Identifying and boosting “Gazelles”: Evidence from business accelerators," Journal of Financial Economics, Elsevier, vol. 139(1), pages 260-287.
    3. Clément de Chaisemartin & Jaime Ramirez-Cuellar, 2020. "At What Level Should One Cluster Standard Errors in Paired Experiments, and in Stratified Experiments with Small Strata?," NBER Working Papers 27609, National Bureau of Economic Research, Inc.
    4. Keijiro Otsuka, 2020. "Strategy for Cluster-Based Industrial Development in Developing Countries," Discussion Papers 2019, Graduate School of Economics, Kobe University.
    5. Dalton, Patricio & Rüschenpöhler, Julius & Uras, Burak & Zia, Bilal, 2019. "Local Best Practices for Business Growth," Other publications TiSEM fc650e2f-88cf-4d75-8257-f, Tilburg University, School of Economics and Management.
    6. Helke Seitz, 2020. "Subgroup Analysis of Investment Constraints: Evidence from Ugandan Microenterprises," Discussion Papers of DIW Berlin 1920, DIW Berlin, German Institute for Economic Research.
    7. Chethan & Ramesh L, 2020. "Analyzing the entrepreneurial ecosystem for women entrepreneurs: A study of rural Jamshoro, Pakistan," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 11(3), pages 23-29, September.
    8. Diego Ubfal & Irani Arraiz & Diether Beuermann & Michael Frese & Alessandro Maffioli & Daniel Verch, 2019. "The Impact of Soft-Skills Training for Entrepreneurs in Jamaica," Working Papers 645, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    9. Anandi Mani & Emma Riley, 2019. "Social networks, role models, peer effects, and aspirations," WIDER Working Paper Series wp-2019-120, World Institute for Development Economic Research (UNU-WIDER).
    10. Lubega, Patrick & Nakakawa, Frances & Narciso, Gaia & Newman, Carol & Kaaya, Archileo N. & Kityo, Cissy & Tumuhimbise, Gaston A., 2021. "Body and mind: Experimental evidence from women living with HIV," Journal of Development Economics, Elsevier, vol. 150(C).

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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