Does the small business programme benefit self-employed workers? Evidence from Nicaragua

Booyuel Kim, Rony Rodriguez-Ramirez and Hee-Seung Yang ()

Journal of Development Effectiveness, 2024, vol. 16, issue 4, 428-447

Abstract: Business and skills training programmes have been a popular social policy intervention to increase productivity of the self-employed 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’ earnings 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.

Date: 2024
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Working Paper: Does the Small Business Programme Benefit Self-Employed Workers? Evidence from Nicaragua (2022)
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DOI: 10.1080/19439342.2023.2300138

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