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The Effects of Micro-entrepreneurship Programs on Labor Market Performance: Experimental Evidence from Chile

Claudia Martínez A., Esteban Puentes () and Jaime Ruiz-Tagle
Authors registered in the RePEc Author Service: Claudia Martínez A. ()

American Economic Journal: Applied Economics, 2018, vol. 10, issue 2, 101-24

Abstract: We investigate the impact of a program providing asset transfers and business training to low income individuals in Chile, and asked whether a larger asset transfer would magnify the program's impact. We randomly assigned participation in a large scale, publicly run micro-entrepreneurship program and evaluated its effects over 45 months. The program improved business practices, employment, and labor income. In the short run, self-employment increased by 14.8/25.2 percentage points for a small/large asset transfer. In the long run, individuals assigned to a smaller transfer were 9 percentage points more likely to become wage workers, whereas those assigned to larger transfers tended to remain self-employed.

JEL-codes: J16 J23 L25 L26 L53 O14 R23 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/app.20150245
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American Economic Journal: Applied Economics is currently edited by Alexandre Mas

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