Entrepreneurship Training and Self-Employment among University Graduates : Evidence from a Randomized Trial In Tunisia

In economies characterized by low labor demand and high rates of youth unemployment, entrepreneurship training has the potential to enable youth to gain skills and create their own jobs. This paper presents experimental evidence on a new entrepreneurship track that provides business training and personalized coaching to university students in Tunisia. Undergraduates in the final year of licence appliquee were given the opportunity to graduate with a business plan instead of following the standard curriculum. This paper relies on randomized assignment of the entrepreneurship track to identify impacts on labor market outcomes one year after graduation. The analysis finds that the entrepreneurship track was effective in increasing self-employment among applicants, but that the effects are small in absolute terms. In addition, the employment rate among participants remains unchanged, pointing to a partial substitution from wage employment to self-employment. The evidence shows that the program fostered business skills, expanded networks, and affected a range of behavioral skills. Participation in the entrepreneurship track also heightened graduates optimism toward the future shortly after the Tunisian revolution.

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Bibliographic Details
Main Authors: Premand, Patrick, Brodmann, Stefanie, Almeida, Rita, Grun, Rebekka, Barouni, Mahdi
Format: Policy Research Working Paper biblioteca
Language:English
en_US
Published: World Bank, Washington, DC 2012-12
Subjects:ACADEMIC YEAR, ACCESS TO CREDIT, ACCESS TO INFORMATION, ACCESS TO JOBS, ACHIEVEMENT, ACTIVE LABOR, ACTIVE LABOR MARKET, ACTIVE LABOR MARKET PROGRAMS, ADMINISTRATIVE RECORDS, ATTENTION, ATTRITION, BUSINESS NETWORKS, BUSINESS OWNERS, BUSINESS PLAN, BUSINESS PLANS, BUSINESS SURVIVAL, BUSINESS TRAINING, CLASSROOM, CLASSROOM TRAINING, COLLEGE GRADUATE, COMMUNITY COLLEGE, COMPETENCIES, CONTROL GROUPS, CREDIT ACCESS, CREDIT APPLICATIONS, CREDIT CONSTRAINTS, CURRICULUM, DEVELOPMENT BANK, DEVELOPMENT CENTER, DISADVANTAGED YOUTH, EARNINGS, ECONOMIC CHARACTERISTICS, ELIGIBLE STUDENTS, EMPLOYABILITY, EMPLOYERS, EMPLOYMENT, EMPLOYMENT IMPACTS, EMPLOYMENT OFFICE, EMPLOYMENT OPPORTUNITIES, EMPLOYMENT OUTCOMES, EMPLOYMENT POLICIES, EMPLOYMENT PROGRAM, EMPLOYMENT PROGRAMS, EMPLOYMENT RATE, EMPLOYMENT STATUS, ENROLLMENT RATES, ENTREPRENEUR, ENTREPRENEURIAL ACTIVITIES, ENTREPRENEURIAL ACTIVITY, ENTREPRENEURIAL SKILLS, ENTREPRENEURS, ENTREPRENEURSHIP DEVELOPMENT, ENTREPRENEURSHIP SUPPORT, ENTREPRENEURSHIP TRAINING, ENTREPRENEURSHIP TRAININGS, EXAMS, EXCLUSION, FAMILIES, FEMALE ENTERPRISE, FINANCIAL ANALYSIS, FINANCIAL LITERACY, FINANCIAL SUPPORT, FIRM SIZE, GENDER, GRADUATES WITH SKILLS, GRADUATION RATE, GRADUATION REQUIREMENTS, GROSS ENROLLMENT, GROSS ENROLLMENT RATES, GROWTH OPPORTUNITIES, HIGH UNEMPLOYMENT, HIGHER EDUCATION, HOUSEHOLD INCOME, HUMAN DEVELOPMENT, INDIVIDUAL ENTREPRENEURSHIP, INFORMATION ABOUT CREDIT, INTERNATIONAL BANK, INTERVENTIONS, JOB OFFER, JOB OPPORTUNITIES, JOB SATISFACTION, JOB SEARCH, JOBS, LABOR DEMAND, LABOR ECONOMICS, LABOR FORCE, LABOR FORCE SURVEY, LABOR MARKET, LABOR MARKET EXPERIENCE, LABOR MARKET OUTCOMES, LABOUR, LACK OF ACCESS, LACK OF INFORMATION, LEADERSHIP, LEARNING, LITERACY, LITERATURE, LOAN, LOCAL EMPLOYMENT OFFICE, LOCAL EMPLOYMENT OFFICES, MENTAL HEALTH, MICRO ENTERPRISES, MICRO FINANCE, MICROFINANCE, MICROFINANCE INSTITUTIONS, MINIMUM WAGE, MINISTRIES OF EDUCATION, MINISTRY OF EDUCATION, MOTIVATION, NEW BUSINESSES, OCCUPATIONS, ON-THE-JOB TRAINING, OPEN ACCESS, PAPERS, PERSONALITY, PERSONALITY TRAITS, PLAYING, POST-SECONDARY EDUCATION, PRELIMINARY EVIDENCE, PRESENT EVIDENCE, PREVIOUS SECTION, PREVIOUS STUDIES, PRIVATE SECTOR, PRIVATE SECTOR JOB, PRIVATE SECTOR JOBS, PRIVATE SECTOR WAGE, PRODUCTIVITY GROWTH, PROFITABILITY, PROGRAM BENEFICIARIES, PSYCHOLOGY, PUBLIC EMPLOYMENT, PUBLIC SECTOR JOB, PUBLIC SECTOR JOBS, READING, RECALL, RECOGNITION, SALARIED EMPLOYMENT, SALARIED WORKER, SELF-EMPLOYMENT, SKILLED WORKERS, SKILLS DEVELOPMENT, SKILLS TRAINING, SOCIAL COHESION, SOCIAL NETWORK, SOCIAL SECURITY, SPORTS, START-UP, START-UP CAPITAL, SUBSTITUTION EFFECT, SURVIVAL RATES, TEACHING, TECHNICAL KNOWLEDGE, TELECOMMUNICATIONS, TERTIARY EDUCATION, THINKING, TRAINING COMPONENT, TRAINING CONTENT, TRAINING COURSE, TRAINING PARTICIPANTS, TRAINING PROGRAM, TRAINING PROGRAMS, UNDERGRADUATES, UNEMPLOYED, UNEMPLOYED YOUTH, UNEMPLOYMENT RATE, UNEMPLOYMENT SPELLS, UNIVERSITIES, UNIVERSITY DEGREE, UNIVERSITY GRADUATES, UNIVERSITY PROFESSORS, UNIVERSITY STUDENTS, VENTURE CAPITAL, VENTURE CAPITAL FIRM, VOCATIONAL TRAINING, VOCATIONAL TRAINING PROGRAMS, WAGE EMPLOYMENT, WAGE SUBSIDIES, WAGE SUBSIDY, WAGE SUBSIDY PROGRAMS, WORKER, WORKERS, YOUNG WORKERS, YOUTH EMPLOYMENT, YOUTH TRAINING, YOUTH TRAINING PROGRAM, YOUTH UNEMPLOYMENT, YOUTH UNEMPLOYMENT RATE, YOUTH UNEMPLOYMENT RATES,
Online Access:http://documents.worldbank.org/curated/en/2012/12/17028361/
http://hdl.handle.net/10986/12118
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Summary:In economies characterized by low labor demand and high rates of youth unemployment, entrepreneurship training has the potential to enable youth to gain skills and create their own jobs. This paper presents experimental evidence on a new entrepreneurship track that provides business training and personalized coaching to university students in Tunisia. Undergraduates in the final year of licence appliquee were given the opportunity to graduate with a business plan instead of following the standard curriculum. This paper relies on randomized assignment of the entrepreneurship track to identify impacts on labor market outcomes one year after graduation. The analysis finds that the entrepreneurship track was effective in increasing self-employment among applicants, but that the effects are small in absolute terms. In addition, the employment rate among participants remains unchanged, pointing to a partial substitution from wage employment to self-employment. The evidence shows that the program fostered business skills, expanded networks, and affected a range of behavioral skills. Participation in the entrepreneurship track also heightened graduates optimism toward the future shortly after the Tunisian revolution.