Entrepreneurship Training and Self-Employment Among University Graduates: Evidence from a Randomized Trial in Tunisia

39 Pages Posted: 22 Dec 2012

See all articles by Patrick Premand

Patrick Premand

World Bank

Stefanie Brodmann

World Bank

Rita Almeida

World Bank; IZA Institute of Labor Economics

Rebekka Grun

affiliation not provided to SSRN

Mahdi Barouni

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Abstract

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 appliquée 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.

Keywords: youth employment, self-employment, entrepreneurship training, program evaluation, behavioral skills, soft skills

JEL Classification: O12, J24, I21, L26

Suggested Citation

Premand, Patrick and Brodmann, Stefanie and Almeida, Rita and Grun, Rebekka and Barouni, Mahdi, Entrepreneurship Training and Self-Employment Among University Graduates: Evidence from a Randomized Trial in Tunisia. IZA Discussion Paper No. 7079, Available at SSRN: https://ssrn.com/abstract=2192855 or http://dx.doi.org/10.2139/ssrn.2192855

Patrick Premand (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Stefanie Brodmann

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Rita Almeida

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Rebekka Grun

affiliation not provided to SSRN

No Address Available

Mahdi Barouni

affiliation not provided to SSRN

No Address Available

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