Michaelides, Marios and Benus, Jacob (2010): Are self-employment training programs effective? Evidence from Project GATE.
Download (145kB) | Preview
In 2002, the U.S. Department of Labor and the Small Business Administration implemented Project GATE, an experimental demonstration program designed to provide free self-employment assistance to individuals interested in starting their own business. This paper uses data from Project GATE to examine the efficacy of public self-employment training programs in the modern U.S. economy. Our analyses show that GATE led to significant improvements in the post-training outcomes of treatment group participants who were unemployed at the time of application. Particularly, GATE had a significant positive impact on new business starts and sustainability for unemployed participants five years after random assignment. For those who were unemployed at random assignment, GATE also led to higher employment likelihood and higher total earnings five years after random assignment. GATE had no impact, however, for participants who were employed, self-employed, or out of the labor force at the time of application.
|Item Type:||MPRA Paper|
|Original Title:||Are self-employment training programs effective? Evidence from Project GATE|
|English Title:||Are self-employment training programs effective? Evidence from Project GATE|
|Keywords:||self-employment; small business; unemployment; workforce development; SEA; Project GATE|
|Subjects:||H - Public Economics > H4 - Publicly Provided Goods
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior
|Depositing User:||Marios Michaelides|
|Date Deposited:||24. Feb 2010 07:01|
|Last Modified:||11. Feb 2013 17:25|
Acs Z.J. (1999). Are Small Firms Important? Their Role and Impact. Kluwer Academic Publishers, Boston, MA.
Bates T. (1997). Race, Self-Employment, and Upward Mobility: An Illusive American Dream. Woodrow Wilson Center Press, Washington DC; Johns Hopkins University Press, Baltimore, MD.
Benus J., McConnell S., Bellotti J., Shen T., Fortson K., Kahvecioglu D. (2008). Growing America Through Entrepreneurship: Findings from the Evaluation of Project GATE. U.S. Department of Labor, Washington DC, May 2008.
Benus J., Shen T., Zhang S., Chan M., Hansen B. (2009). Growing America Through Entrepreneurship: Final Evaluation of Project GATE. U.S. Department of Labor, Washington DC, December 2009.
Benus, J., Johnson T., Wood M,, Grover N., and Shen T. (1995). Self-Employment Programs: A New Reemployment Strategy: Final Report on the UI Self-Employment Demonstration. Unemployment Insurance Occasional Paper no. 95-4. U.S. Department of Labor, Washington DC, 1995.
Blanchflower D.G., Levine P.B., Zimmerman D.J. (2003). Discrimination in the Small Business Credit Market. Review of Economics and Statistics, 85: 930-943.
Boden R.J. (1999). Flexible Working Hours, Family Responsibilities, and Female Self-Employment: Gender Differences in Self-Employment Selection. American Journal of Economics and Sociology, 58: pp. 71-83.
Bregger J.E. (1996). Measuring Self-Employment in the United States. Monthly Labor Review, 119: 3-9.
Bucks B.K., Kennickell A.B., Moore K.B (2006). Recent Changes in U.S. Family Finances: Evidence from the 2001 and 2004 Survey of Consumer Finances. Federal Reserve Bulletin, 92: 1-38.
Carr D. (1996). Two Paths to Self-Employment? Women's and Men's Self-Employment in the United States, 1980. Work and Occupations, 23: 26-53.
Carter S. (2000). Improving the Numbers and Performance of Women-Owned Businesses: Some Implications for Training and Advisory Services. Education and Training, 42: 326-333.
Cavalluzzo K., Wolken J. (2005). Small Business Loan Turndowns, Personal Wealth, and Discrimination. Journal of Business, 78: 2153-2177.
Davis S.J., Haltiwanger J., Jarmin R. (2008). Turmoil and Growth: Young Businesses, Economic Churning, and Productivity Gains. Ewing Marion Kauffman Foundation Report, June 2008.
Dennis W.J. (1999). Business Starts and Stops. National Federation of Independent Business Paper Series, November 1999.
Dunn T., Holtz-Eakin D. (2000). Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links. Journal of Labor Economics, 18: 282-305.
Fairlie R.W. (1999). The Absence of the African-American Owned Business: An Analysis of the Dynamic of Self-Employment. Journal of Labor Economics, 17: 80-108.
Fairlie R.W., Meyer B.D. (1996). Ethnic and Racial Self-Employment Differences and Possible Explanations. Journal of Human Resources, 31: 757-793.
Fairlie R.W., Robb A.M. (2007). Why are Black-Owned Businesses Less Successful than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital. Journal of Labor Economics, 25: 289-323.
Glocker D., Steiner V. (2007). Self-Employment: A Way to End Unemployment? Empirical Evidence from German Pseudo-Panel Data. IZA Discussion Paper No. 2561.
Hout M., Rosen H.S. (2000). Self-Employment, Family Background, and Race. Journal of Human Resources, 35: 670-692.
Kosanovich W.T., Fleck H., Yost B., Armon W., Siliezar S. (2002). Comprehensive Assesment of Self-Employment Assistance Programs. Employment and Training Administration Occasional Paper 2002-01. U.S. Department of Labor, Washington DC 2002.
Kwansa, F.A. (1998). Black-American Entrepreneurship: The Case of the Foodservice Industry. Marriage and Household Review, 18: 43-53.
Lowrey Y. (2009). Startup Business Characteristics and Dynamics: A Data Analysis of the Kauffman Firm Survey. SBA Working Paper, August 2009.
Meager N. (1992). Does Unemployment Lead to Self- Employment? Small Business Economics, 4: 87-103.
Minniti M., Bygrave W.D. (2004). National Entrepreneurship Assessment, United States of America. Global Entrepreneurship Monitor 2003 Executive Report.
Reynolds P.D., White S.B. (1997). The Entrepreneurial Process. Greenwood Publishing, Westport, CT.
Rissman E.R. (2003). Self-Employment as an Alternative to Unemployment. Federal Reserve Bank of Chicago, Working Paper 2003-34.
Vroman, W. (1997). Self-Employment Assistance: Revised Report. Report to Congress, Washington DC, 1997.
Wandner S.A. (2008). Employment Programs for Recipients of Unemployment Insurance. Monthly Labor Review, October 2008.