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Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training

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  • Fairlie, Robert

Abstract

Theories of market failures and targeting motivate the promotion of entrepreneurship training programs and generate testable predictions regarding heterogeneous treatment effects from such programs. Using a large randomized evaluation in the United States, we find no strong or lasting effects on those most likely to face credit or human capital constraints, or labor market discrimination. We do find a short-run effect on business ownership for those unemployed at baseline, but this dissipates at longer horizons. Treatment effects on the full sample are also short-term and limited in scope: we do not find effects on business sales, earnings, or employees.

Suggested Citation

  • Fairlie, Robert, 2014. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," Santa Cruz Department of Economics, Working Paper Series qt56k4264f, Department of Economics, UC Santa Cruz.
  • Handle: RePEc:cdl:ucscec:qt56k4264f
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    Cited by:

    1. Francine Lafontaine & Kathryn Shaw, 2016. "Serial Entrepreneurship: Learning by Doing?," Journal of Labor Economics, University of Chicago Press, vol. 34(S2), pages 217-254.
    2. Huber, Laura Rosendahl & Sloof, Randolph & Van Praag, Mirjam, 2014. "The effect of early entrepreneurship education: Evidence from a field experiment," European Economic Review, Elsevier, vol. 72(C), pages 76-97.
    3. Premand, Patrick & Brodmann, Stefanie & Almeida, Rita & Grun, Rebekka & Barouni, Mahdi, 2016. "Entrepreneurship Education and Entry into Self-Employment Among University Graduates," World Development, Elsevier, vol. 77(C), pages 311-327.
    4. repec:oup:jecgeo:v:17:y:2017:i:5:p:1111-1148. is not listed on IDEAS
    5. repec:bla:jemstr:v:26:y:2017:i:1:p:3-34 is not listed on IDEAS
    6. Axel Demenet, 2016. "Does Managerial Capital also Matter Among Micro and Small Firms in Developing Countries?," Working Papers DT/2016/12, DIAL (Développement, Institutions et Mondialisation).
    7. Caliendo, Marco & Künn, Steffen & Weißenberger, Martin, 2016. "Personality traits and the evaluation of start-up subsidies," European Economic Review, Elsevier, vol. 86(C), pages 87-108.
    8. Bandiera, Oriana. & Buehren, Niklas. & Burgess, Robin. & Goldstein, Markus. & Gulesci, Selim. & Rasul, Imran. & Sulaiman, Munshi., 2015. "Women’s economic empowerment in action : evidence from a randomized control trial in Africa," ILO Working Papers 994874053402676, International Labour Organization.
    9. Elert, Niklas & Andersson, Fredrik W. & Wennberg, Karl, 2015. "The impact of entrepreneurship education in high school on long-term entrepreneurial performance," Journal of Economic Behavior & Organization, Elsevier, vol. 111(C), pages 209-223.
    10. Gabriela Calderón & Jesse M.Cunha ; & Giacomo De Giorgi, 2013. "Business Literacy and Development: Evidence from a Randomized Controlled Trial in Rural Mexico," Working Papers 2013-24, Banco de México.
    11. Oliver Falck & Robert Gold & Stephan Heblich, 2017. "Lifting the iron curtain: school-age education and entrepreneurial intentions," Journal of Economic Geography, Oxford University Press, vol. 17(5), pages 1111-1148.
    12. Anastasia Cozarenco & Ariane Szafarz, 2016. "Microcredit in Industrialized Countries: Unexpected Consequences of Regulatory Loan Ceilings," Working Papers CEB 16-021, ULB -- Universite Libre de Bruxelles.
    13. Robert W. Fairlie & Javier Miranda, 2017. "Taking the Leap: The Determinants of Entrepreneurs Hiring Their First Employee," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(1), pages 3-34, February.
    14. Oliver Falck & Stefanie Gäbler, 2016. "Einfluss der Sozialisierung im Schulalter auf das Unternehmertum," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 23(04), pages 29-33, August.
    15. Oliver Falck & Johannes Koenen & Tobias Lohse, 2015. "Die Bedeutung von Programmevaluation in der deutschen Innovationspolitik," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(22), pages 52-55, November.
    16. Lindquist, Matthew J. & Sol, Joeri & van Praag, Mirjam C. & Vladasel, Theodor, 2016. "On the Origins of Entrepreneurship: Evidence from Sibling Correlations," IZA Discussion Papers 10278, Institute for the Study of Labor (IZA).
    17. Claudia Martínez A. & Esteban Puentes & Jaime Ruiz-Tagle, 2015. "Do Micro-Entrepreneurship Programs Increase Wage-Work? Evidence from Chile," Documentos de Trabajo 461, Instituto de Economia. Pontificia Universidad Católica de Chile..
    18. Kathryn L. Shaw & Anders Sørensen, 2017. "The Productivity Advantage of Serial Entrepreneurs," NBER Working Papers 23320, National Bureau of Economic Research, Inc.
    19. Kugler Franziska & Schwerdt Guido & Wößmann Ludger, 2014. "Ökonometrische Methoden zur Evaluierung kausaler Effekte der Wirtschaftspolitik," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 15(2), pages 105-132, June.
    20. Rosendahl Huber, Laura & Sloof, Randolph & van Praag, Mirjam C., 2012. "The Effect of Early Entrepreneurship Education: Evidence from a Randomized Field Experiment," IZA Discussion Papers 6512, Institute for the Study of Labor (IZA).
    21. repec:ces:ifodre:v:24:y:2016:i:04:p:29-33 is not listed on IDEAS
    22. Marios Michaelides, 2017. "Nascent Entrepreneurship and Race: Evidence from the GATE Experiment," University of Cyprus Working Papers in Economics 02-2017, University of Cyprus Department of Economics.
    23. Argent, Jonathan & Augsburg, Britta & Rasul, Imran, 2014. "Livestock asset transfers with and without training: Evidence from Rwanda," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 19-39.

    More about this item

    Keywords

    Business; entrepreneurship; training; random experiment; evaluation; self-employment;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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