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

Marios Michaelides () and Scott Davis

University of Cyprus Working Papers in Economics from University of Cyprus Department of Economics

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.

Keywords: Great Recession; Self-employment; Small business; Training; Unemployment; Program evaluation. (search for similar items in EconPapers)
JEL-codes: J6 H4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent, nep-lab, nep-pbe and nep-sbm
Date: 2016-11
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Persistent link: http://EconPapers.repec.org/RePEc:ucy:cypeua:09-2016

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