DP8823 Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training

Author(s): Robert W Fairlie, Dean S. Karlan, Jonathan Zinman
Publication Date: February 2012
Keyword(s): climate coalitions, climate policy, free riding, game theory
JEL(s): C68, C72, D58, Q54
Programme Areas: Public Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=8823

We use randomized program offers and multiple follow-up survey waves to examine the effects of entrepreneurship training on a broad set of outcomes. Training increases short run business ownership and employment, but there is no evidence of broader or longer run effects. We also test whether training mitigates market frictions by estimating heterogeneous treatment effects. 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. 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.