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

Author

Listed:
  • Fairlie, Robert W.

    (University of California, Los Angeles)

  • Karlan, Dean

    (Yale University)

  • Zinman, Jonathan

    (Dartmouth College)

Abstract

Theories of market failures and targeting motivate the promotion of entrepreneurship training programs and generate testable predictions regarding heterogeneous treatment effects from such programs. Using a large randomized evaluation in the United States, we find no strong or lasting effects on those most likely to face credit or human capital constraints, or labor market discrimination. We do find a short-run effect on business ownership for those unemployed at baseline, but this dissipates at longer horizons. Treatment effects on the full sample are also short-term and limited in scope: we do not find effects on business sales, earnings, or employees.

Suggested Citation

  • Fairlie, Robert W. & Karlan, Dean & Zinman, Jonathan, 2014. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," IZA Discussion Papers 8367, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8367
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    References listed on IDEAS

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    More about this item

    Keywords

    self-employment; evaluation; random experiment; training; entrepreneurship;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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