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

Robert W. Fairlie, Dean Karlan, Jonathan Zinman

NBER Working Paper No. 17804
Issued in February 2012
NBER Program(s):   LE   LS   PE

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.

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This paper was revised on August 22, 2012

Acknowledgments

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