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We present results of an experiment benchmarking a workforce training programagainst cash transfers for underemployed young adults in Rwanda. 3.5 yearsafter treatment, the training program enhances productive time use and assetinvestment, while the cash transfers drive productive assets, livestock values,savings, and subjective well-being. Both interventions have powerful effects onentrepreneurship. But while labor, sales, and profits all go up, the impliedwage rate in these businesses is low. Our results suggest that credit is amajor barrier to self-employment, but deeper reforms may be required to enableentrepreneurship to provide a transformative pathway out of poverty.

Skills and Liquidity Barriers to Youth Employment: Medium-term Evidence from a Cash Benchmarking Experiment in Rwanda