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Are self-employment training programs effective? evidence from project GATE

Michaelides, Marios and Benus, Jacob (2010): Are self-employment training programs effective? evidence from project GATE.

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Abstract

We examine the efficacy of providing self-employment training to unemployed and other individuals interested in self-employment using data from Project GATE. This experimental design program offered self-employment training services to a random sample of individuals who expressed a strong interest in self-employment. We find Project GATE was effective in assisting unemployed participants start their own business, leading to significant impacts in self-employment and overall employment soon after program entry. The program also helped unemployed participants remain self-employed and avoid unemployment even five years after program entry. However, the program was not effective in improving the labor market outcomes of non-unemployed participants.

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