The Effects of Micro-entrepreneurship Programs on Labor Market Performance: Experimental Evidence from Chile | Zendy

Claudia Martínez A. | Zendy; Esteban Puentes | Zendy; Jaime RuizTagle | Zendy

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The Effects of Micro-entrepreneurship Programs on Labor Market Performance: Experimental Evidence from Chile

Author(s) -

Claudia Martínez A.,

Esteban Puentes,

Jaime RuizTagle

Publication year - 2018

Publication title -

american economic journal applied economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 12.996

H-Index - 82

eISSN - 1945-7782

pISSN - 1945-7790

DOI - 10.1257/app.20150245

Subject(s) - entrepreneurship , asset (computer security) , wage , transfer (computing) , scale (ratio) , labour economics , economics , demographic economics , business , finance , geography , computer science , computer security , cartography , parallel computing

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 a 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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