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

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  • Zinman, Jonathan
  • Karlan, Dean
  • Fairlie, Robert W

Abstract

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.

Suggested Citation

  • Zinman, Jonathan & Karlan, Dean & Fairlie, Robert W, 2012. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," CEPR Discussion Papers 8823, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8823
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    Keywords

    Climate coalitions; Climate policy; Free riding; Game theory;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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