Faculty of Economics and Business Administration Publications Database

Can Entrepreneurial Activity Be Taught? Quasi-Experimental Evidence from Central America

Klinger, Bailey
Volume: 39
Number: 9
Pages: 1592 - 1610
Month: September
ISSN-Print: 0305-750X
Link External Source: Online Version
Year: 2011
Keywords: Entrepreneurship; Business Training; Regression Discontinuity Design; Central America; El Salvador
Abstract: Business training is a widely used development tool, yet little is known about its impact. We study the effects of such a business training program held in CentralAmerica. To deal with endogenous selection into the training program, we use a regression discontinuity design, exploiting the fact that a fixed number of applicants are taken into the training program based on a pre-training score. Business training significantly increases the probability that an applicant to the workshop starts a business or expands an existing business. Results also suggest gender heterogeneity as well as the presence of financial constraints.