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Can Entrepreneurial Activity be Taught? Quasi-Experimental Evidence from Central America

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  • Klinger, Bailey
  • Schündeln, Matthias

Abstract

Summary Business training is a widely used development tool, yet little is known about its impact. We study the effects of such a business training program held in Central America. To deal with endogenous selection into the training program, we use a regression discontinuity design, exploiting the fact that a fixed number of applicants are taken into the training program based on a pre-training score. Business training significantly increases the probability that an applicant to the workshop starts a business or expands an existing business. Results also suggest gender heterogeneity as well as the presence of financial constraints.

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  • Klinger, Bailey & Schündeln, Matthias, 2011. "Can Entrepreneurial Activity be Taught? Quasi-Experimental Evidence from Central America," World Development, Elsevier, vol. 39(9), pages 1592-1610, September.
    • Handle: RePEc:eee:wdevel:v:39:y:2011:i:9:p:1592-1610
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