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Role Models or Individual Consulting: The Impact of Personalizing Micro-entrepreneurship Training

Author

Listed:
  • Jeanne Lafortune
  • Julio Riutort
  • José Tessada

Abstract

Using a randomized experiment in Chile we study the impact role models have in the context of a training program for micro-entrepreneurs. We show that being in a group randomly chosen to be visited by a successful alumnus of the program increases household income one year after, mostly due to increased business participation and business income. We also randomized the provision of personalized "consulting sessions" vis-á-vis group sessions, and observe similar effects on income, with the role model intervention being significantly more cost effective and better suited for less experienced businesses.

Suggested Citation

  • Jeanne Lafortune & Julio Riutort & José Tessada, 2018. "Role Models or Individual Consulting: The Impact of Personalizing Micro-entrepreneurship Training," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 222-245, October.
    • Handle: RePEc:aea:aejapp:v:10:y:2018:i:4:p:222-45
    Note: DOI: 10.1257/app.20170077
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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