Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training

Fairlie, Robert; Karlan, Dean; Zinman, Jonathan

Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training

Robert Fairlie, Dean Karlan and Jonathan Zinman

No 17804, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Various theories of market failures and targeting motivate the promotion of entrepreneurship training programs throughout the world. Using data from the largest randomized control trial ever conducted on entrepreneurship training, we examine the validity of such motivations and find that training does not have strong effects (in either relative or absolute terms) on those most likely to face credit or human capital constraints, or labor market discrimination. On the other hand, training does have a relatively strong short-run effect on business ownership for those unemployed at baseline, but not at other horizons or for other outcomes. On average, training increases short-run business ownership and employment, but there is no evidence of broader or longer-run effects on business ownership, business performance or broader outcomes.

JEL-codes: D04 D14 D22 H32 H43 I38 J21 J24 (search for similar items in EconPapers)
Date: 2012-02
New Economics Papers: this item is included in nep-ent and nep-lab
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Citations: View citations in EconPapers (16)

Published as Robert W. Fairlie & Dean Karlan & Jonathan Zinman, 2015. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 125-61, May.

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