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Does the Small Business Program Benefit Self-Employed Workers? Evidence from Nicaragua

Kim, Booyuel / Rony Rodriguez Ramirez / Yang, Hee-Seung

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Abstract

Business and skills training programs have been a popular social policy option to promote self-employment and improve its performance in developing countries. We study the Small Business of the Family Economy (SBFE) program, a government business training program in Nicaragua designed to support self-employed workers in Nicaragua. With data from three survey rounds of the Nicaragua Living Standards Measurement Survey, we use a difference-in-differences strategy exploiting variation across time and industry in terms of eligibility to the program. Our estimates suggest that the SBFE program increases self-employed workers’ income by 21%. In particular, our results demonstrate stronger effects on female entrepreneurs and those with low educational attainment.

Issue Date
2018-12
Publisher
KDI School of Public Policy and Management
Keywords
business training; self-employment; small business; Nicaragua
Pages
29
Series Title
KDI School Working Paper 18-16
URL
https://ssrn.com/abstract=3336383
Language
ENG
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