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From unemployment to self-employment: the role of entrepreneurship training

Author

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  • Marios Michaelides
  • Scott Davis

Abstract

This paper uses data from the Growing America Through Entrepreneurship (GATE) program to assess the effectiveness of providing self-employment training to unemployed workers during a period of moderate unemployment and during the Great Recession. Results show that self-employment training can significantly improve the short-term self-employment and overall employment rates of unemployed workers, with effects on self-employment persisting for long periods after program entry. Although it appears unlikely that self-employment training may improve self-employment earnings, there is evidence that some participants may achieve higher salary and total earnings when the labor market is relatively strong. Based on these findings, we conclude that self-employment training can potentially be an effective short-term reemployment strategy, regardless of the overall economic conditions, but it is unlikely to help unemployed workers improve their long-term employment and earnings outcomes.

Suggested Citation

  • Marios Michaelides & Scott Davis, 2016. "From unemployment to self-employment: the role of entrepreneurship training," University of Cyprus Working Papers in Economics 09-2016, University of Cyprus Department of Economics.
  • Handle: RePEc:ucy:cypeua:09-2016
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    File URL: http://papers.econ.ucy.ac.cy/RePEc/papers/09-16.pdf
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    References listed on IDEAS

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    12. repec:mpr:mprres:5464 is not listed on IDEAS
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    More about this item

    Keywords

    Great Recession; Self-employment; Small business; Training; Unemployment; Program evaluation.;

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • H4 - Public Economics - - Publicly Provided Goods

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