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

  • Robert W. Fairlie
  • Dean Karlan
  • Jonathan Zinman

Various theories of market failures and targeting motivate the promotion of entrepreneurship training programs throughout the world. Using data from the largest randomized control trial ever conducted on entrepreneurship training, we examine the validity of such motivations and find that training does not have strong effects (in either relative or absolute terms) on those most likely to face credit or human capital constraints, or labor market discrimination. On the other hand, training does have a relatively strong short-run effect on business ownership for those unemployed at baseline, but not at other horizons or for other outcomes. On average, training increases short-run business ownership and employment, but there is no evidence of broader or longer-run effects on business ownership, business performance or broader outcomes.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17804.

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Date of creation: Feb 2012
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Publication status: published as Behind the GATE Experiment: Evidence on Effects of & Rationales for Subsidized Entrepreneurship Training forthcoming, American Economic Journal: Policy, with Rob Fairlie and Dean Karlan
Handle: RePEc:nbr:nberwo:17804
Note: LE LS PE
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  1. Dean Karlan & Ryan Knight & Christopher Udry, 2012. "Hoping to Win, Expected to Lose: Theory and Lessons on Micro Enterprise Development," NBER Working Papers 18325, National Bureau of Economic Research, Inc.
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