Does the Small Business Programme Benefit Self-Employed Workers? Evidence from Nicaragua

Hee-Seung Yang (), Booyuel Kim and Rony Rodriguez-Ramirez
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Booyuel Kim: Seoul National University
Rony Rodriguez-Ramirez: Yonsei University

No 2022rwp-207, Working papers from Yonsei University, Yonsei Economics Research Institute

Abstract: Business and skills training programmes have been a popular social policy intervention to improve the performance of self-employment in developing countries. We study the Small Business of the Family Economy programme, a government business training programme designed to assist Nicaraguan self-employed workers. Using data from three rounds of the Nicaragua Living Standards Measurement Survey, we employ a difference-in-differences strategy to exploit variation in eligibility for the programme across time and economic activity. Our estimates indicate that the programme does not increase self-employed workers’ income overall. However, we find heterogeneous treatment effects for female self-employed workers with low educational attainment, which could be explained by increased working months and having a second job.

Keywords: self-employment; small business; business training; difference-in-differences; propensity score matching; Nicaragua. (search for similar items in EconPapers)
JEL-codes: J24 L26 M53 O12 (search for similar items in EconPapers)
Pages: 40pages
Date: 2022-11
New Economics Papers: this item is included in nep-ent and nep-lma
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Journal Article: Does the small business programme benefit self-employed workers? Evidence from Nicaragua (2024)
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