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

Michaelides Marios () and Davis Scott
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Davis Scott: Department of Economics, University of Cyprus, Nicosia, American Institutes of Research, Washington, D.C., USA

IZA Journal of Labor Policy, 2020, vol. 10, issue 1, 35

Abstract: We present experimental evidence on the effects of entrepreneurship training for unemployed workers in the U.S. at two different stages in the business cycle. In the context of a strong economy, training helped training participants – particularly those with prior self-employment experience – to start a business and become self-employed, while it may have persuaded others to pursue salary employment instead. During the Great Recession, training helped training participants become self-employed, particularly those with no prior self-employment experience. Regardless of economic conditions, positive impacts on self-employment were partly or largely offset by reductions in regular employment. These findings indicate that entrepreneurship training may help unemployed workers to become self-employed at different stages of the business cycle, but there is weak evidence that it can be an effective policy for combating unemployment, particularly during recessions.

Keywords: Great Recession; self-employment; entrepreneurship; start-up; small business; entrepreneurship training; unemployment; policy evaluation; reemployment (search for similar items in EconPapers)
JEL-codes: H4 J6 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.2478/izajolp-2020-0018

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