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Are self-employment training programs effective? Evidence from Project GATE

  • Michaelides, Marios
  • Benus, Jacob

This paper presents new evidence on the efficacy of self-employment training programs using data from Project GATE (Growing America Through Entrepreneurship). Project GATE was an experimental design demonstration program that offered free self-employment training to a random sample of individuals who expressed a strong interest in self-employment. Our analyses show that the program was very effective in assisting unemployed participants start their own business, leading to significant gains in self-employment and overall employment in the early months following program participation. These impacts, however, dissipated over time. Despite the program’s impact on the rapid reemployment of unemployed participants, the program did not lead to significant gains in total earnings. Moreover, our analyses provide no evidence that the program was effective for participants who were employed, self-employed, or not in the labor force at the time of application.

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File URL: http://mpra.ub.uni-muenchen.de/36478/1/MPRA_paper_36478.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 20883.

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Date of creation: 01 Feb 2010
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Handle: RePEc:pra:mprapa:20883
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  1. Robert W. Fairlie & Alicia M. Robb, 2007. "Why Are Black-Owned Businesses Less Successful than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 289-323.
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  12. Fonseca, Raquel & Lopez-Garcia, Paloma & Pissarides, Christopher A., 2001. "Entrepreneurship, start-up costs and employment," European Economic Review, Elsevier, vol. 45(4-6), pages 692-705, May.
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  15. Fairlie, Robert W, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 80-108, January.
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  29. Jacob Benus & Sheena McConnell & Jeanne Bellotti & Theodore Shen & Kenneth Fortson & Daver Kahvecioglu, 2008. "Growing America Through Entrepreneurship: Findings from the Evaluation of Project GATE," Mathematica Policy Research Reports afeceaeccbf54835ae4f79e73, Mathematica Policy Research.
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