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Entrepreneurship training and self-employment among university graduates : evidence from a randomized trial in Tunisia

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Listed:
  • Premand, Patrick
  • Brodmann, Stefanie
  • Almeida, Rita
  • Grun, Rebekka
  • Barouni, Mahdi

Abstract

In economies characterized by low labor demand and high rates of youth unemployment, entrepreneurship training has the potential to enable youth to gain skills and create their own jobs. This paper presents experimental evidence on a new entrepreneurship track that provides business training and personalized coaching to university students in Tunisia. Undergraduates in the final year of licence appliquee were given the opportunity to graduate with a business plan instead of following the standard curriculum. This paper relies on randomized assignment of the entrepreneurship track to identify impacts on labor market outcomes one year after graduation. The analysis finds that the entrepreneurship track was effective in increasing self-employment among applicants, but that the effects are small in absolute terms. In addition, the employment rate among participants remains unchanged, pointing to a partial substitution from wage employment to self-employment. The evidence shows that the program fostered business skills, expanded networks, and affected a range of behavioral skills. Participation in the entrepreneurship track also heightened graduates’ optimism toward the future shortly after the Tunisian revolution.

Suggested Citation

  • Premand, Patrick & Brodmann, Stefanie & Almeida, Rita & Grun, Rebekka & Barouni, Mahdi, 2012. "Entrepreneurship training and self-employment among university graduates : evidence from a randomized trial in Tunisia," Policy Research Working Paper Series 6285, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6285
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    References listed on IDEAS

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    More about this item

    Keywords

    Tertiary Education; Labor Markets; Skills Development and Labor Force Training; Employment and Unemployment; Small and Medium Size Enterprises;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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