The Effects of Micro Entrepreneurship Programs on Labor Market Performance: Experimental Evidence from Chile
Claudia Martínez A.
Esteban Puentes E.
Jaime Ruiz-Tagle V.
- American Economic Journal: Applied Economics (Forthcoming)
We investigate the impact of a program providing asset transfers
and business training to low-income individuals in Chile, and asked
whether a larger asset transfer would magnify the program’s
impact. We randomly assigned participation in a large-scale,
publicly run micro-entrepreneurship program and evaluated its
effects over 45 months. The program improved business practices,
employment, and labor income. In the short run, self-employment
increased by 14.8/25.2 percentage points for small/large asset
transfer. In the long run, individuals assigned to a smaller transfer
were 9 percentage points more likely to become wage-workers,
whereas those assigned to larger transfers tended to remain self-employed.
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