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  3. American Economic Journal: Economic Policy
  4. May 2015
  5. Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training

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

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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. (JEL I26, J24, J68, L25, L26, M13)

Citation

Fairlie, Robert W., Dean Karlan, and Jonathan Zinman. 2015. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training." American Economic Journal: Economic Policy, 7 (2): 125-61. DOI: 10.1257/pol.20120337

Additional Materials

JEL Classification

  • I26 Returns to Education
  • J24 Human Capital; Skills; Occupational Choice; Labor Productivity
  • J68 Mobility, Unemployment, and Vacancies: Public Policy
  • L25 Firm Performance: Size, Diversification, and Scope
  • L26 Entrepreneurship
  • M13 New Firms; Startups
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