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From unemployment to self-employment: The role of entrepreneurship training

Marios Michaelides
Marios Michaelides
 and 
Scott Davis
Scott Davis
   | Dec 17, 2020
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Published Online: Dec 17, 2020
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DOI: https://doi.org/10.2478/izajolp-2020-0018
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© 2020 Marios Michaelides and Scott Davis, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.

Figure 1

Training take-up rates.
Training take-up rates.

Figure A1

Context of Program Operation. Note: The top left figure reports the average annual unemployment rate.(Source: Local Area Unemployment Statistics, U.S. Bureau of Labor Statistics, https://data.bls.gov/PDQWeb/la). The top right figure reports the self-employment rate (Source: Authors’ tabulations of the American Community Survey, https://usa.ipums.org/usa/). The middle left figure reports the number of new establishments as a percentage of the total number of establishments (Source: Business Employment Dynamics, U.S. Bureau of Labor Statistics, https://data.bls.gov/cgi-bin/dsrv?bd). The middle right figure reports the number of establishments that closed as a percentage of the total number of establishments (Source: Business Employment Dynamics, U.S. Bureau of Labor Statistics, https://data.bls.gov/cgi-bin/dsrv?bd). The bottom right and bottom left figures report the average annual pay per employee for salary workers and self-employed workers, respectively (Source: Authors’ tabulations of the American Community Survey, https://usa.ipums.org/usa/). All data retrieved on July 12, 2018.
Context of Program Operation. Note: The top left figure reports the average annual unemployment rate.(Source: Local Area Unemployment Statistics, U.S. Bureau of Labor Statistics, https://data.bls.gov/PDQWeb/la). The top right figure reports the self-employment rate (Source: Authors’ tabulations of the American Community Survey, https://usa.ipums.org/usa/). The middle left figure reports the number of new establishments as a percentage of the total number of establishments (Source: Business Employment Dynamics, U.S. Bureau of Labor Statistics, https://data.bls.gov/cgi-bin/dsrv?bd). The middle right figure reports the number of establishments that closed as a percentage of the total number of establishments (Source: Business Employment Dynamics, U.S. Bureau of Labor Statistics, https://data.bls.gov/cgi-bin/dsrv?bd). The bottom right and bottom left figures report the average annual pay per employee for salary workers and self-employed workers, respectively (Source: Authors’ tabulations of the American Community Survey, https://usa.ipums.org/usa/). All data retrieved on July 12, 2018.

Local average treatment effects on labor market outcomes

Project GATEGATE II
PennsylvaniaMinnesotaMaineNorth CarolinaVirginia
Self-employment
       in own business0.071 (.086).264 (0.089)***0.254 (0.252)0.184 (0.133)0.019 (0.102)
       as contractor0.107 (0.063)*−0.066 (0.069)−.388 (.217)*0.115 (0.117)0.113 (0.111)
       any self-employment0.179 (0.098)*0.198 (0.097)**−0.133 (0.281)0.299 (0.160)*0.132 (0.131)
Regular employment−0.096 (0.111)−0.128 (0.098)0.479 (0.287)*−0.247 (0.180)−0.181 (0.151)
Any employment0.083 (0.095)0.070 (0.076)0.346 (0.262)0.052 (0.164)−0.049 (0.131)
Self-employment earnings24 (116)131 (253)901 (661)290 (249)−208 (188)
Regular earnings207 (528)−800 (797)3,086 (1,628)*181 (559)−1,871 (1,414)
Total earnings231 (532)−669 (796)3,987 (1,755)**471 (599)−2,078 (1,430)
Has employees−0.003 (054)−0.008 (0.054)0.412 (0.194)**0.056 (0.063)−0.025 (0.045)
Number of employees0.08 (0.21)0.02 (0.26)0.75 (0.74)0.42 (0.37)−0.07 (0.08)
Sample sizeN = 467N = 675N = 176N = 825N = 336

Effects by selected characteristics, GATE II

By self-employment experienceBy college degree
No self-employment experienceSelf-employment experienceNo college degreeCollege degree
North CarolinaN = 559N = 266N = 591N = 234
Self-employment
       in own business0.262 (0.178)0.015 (0.197)0.068 (0.140)0.263 (0.242)
       as contractor0.161 (0.140)0.074 (0.203)0.145 (0.122)0.111 (0.410)
       any self-employment0.423 (0.209)**0.089 (0.248)0.213 (0.167)0.374 (0.330)
Salary employment−0.343 (0.243)−0.070 (0.256)−0.262 (0.194)0.172 (0.244)
Any employment0.080 (0.223)0.018 (0.231)−0.048 (0.181)0.546 (0.309)
Self-Emp. earnings292 (327)291 (382)0.299 (253)1,028 (1,707)
Salary earnings547 (857)−227 (577)476 (694)−1,194 (1,688)
Has employees0.143 (0.159)−0.005 (0.094)0.081 (0.070)0.033 (0.047)
Number of employees0.29 (0.17)0.05 (0.07)0.48 (0.44)−0.31 (1.83)
VirginiaN = 190N = 146N = 126N = 210
Self-employment
       in own business0.200 (0.114)*−0.271 (0.259)−0.067 (0.212)0.073 (0.125)
       as contractor0.128 (0.091)0.004 (0.319)−0.171 (0.250)0.159 (0.133)
       any self-employment0.328 (0.140)**−0.266 (0.348)−0.237 (0.310)0.232 (0.156)
Salary employment−0.250 (0.185)0.078 (0.328)−0.210 (0.347)−0.159 (0.173)
Any employment0.078 (0.167)−0.188 (0.259)−0.448 (0.335)0.073 (0.151)
Self-Emp. earnings148 (87)*−647 (620)−509 (354)−102 (245)
Salary earnings−1,849 (2,159)−720 (830)−9,395 (5,619)*111 (603)
Has employees0.037 (0.060)−0.163 (0.094)*0.009 (0.088)−0.039 (0.055)
Number of employees0.06 (0.08)−0.41 (0.24)*−0.15 (0.21)−0.06 (0.08)
By CreditAccessBy Age
Bad CreditGood Credit<45 Years45+ Years
North CarolinaN = 422N = 403N = 341N = 484
Self-employment
       in own business0.310 (0.205)0.039 (0.181)0.377 (0.274)0.090 (0.165)
       as contractor0.039 (0.187)0.145 (0.150)0.241 (0.224)0.063 (0.147)
       any self-employment0.349 (0.253)0.184 (0.206)0.618 (0.327)*0.153 (0.202)
Salary employment−0.440 (0.304)−0.069 (0.226)−0.267 (0.344)−0.261 (0.228)
Any employment−0.091 (0.281)0.115 (0.194)0.351 (0.330)−0.108 (0.207)
Self-Emp. earnings303 (464)277 (261)672 (536)47 (289)
Salary earnings−62 (1,114)257 (476)821 (1,440)−135 (500)
Has employees−0.098 (0.097)0.170 (0.088)*0.125 (0.120)0.027 (0.082)
Number of employees−0.29 (0.29)0.76 (0.63)1.23 (1.02)0.06 (0.34)
VirginiaN = 67N = 269N = 0N = 336
Self-employment
       in own business0.217 (0.424)−0.015 (0.099)–0.019 (0.102)
       as contractor−0.721 (0.654)0.227 (0.114)**–0.113 (0.111)
       any self-employment−.504 (0.670)0.213 (0.133)–0.132 (0.131)
Salary employment0.442 (0.686)−0.246 (0.154)–−0.181 (0.151)
Any employment−0.062 (0.465)−0.013 (0.133)–−0.036 (0.130)
Self-Emp. earnings−616 (858)−141 (188)−208 (188)
Salary earnings198 (1,210)−2,013 (1,572)−1,871 (1,414)
Has employees−0.037 (0.062)−0.014 (0.051)–−0.025 (0.045)
Number of employees−0.08 (0.09)−0.05 (0.08)–−0.07 (.08)

Number of completed counseling sessions and workshops

Number of counseling sessionsNumber of workshops
Project GATE
Pennsylvania
       Treatment1.2 (2.0)4.8 (5.6)
       Control.3 (1.0)1.1 (2.7)
Minnesota
       Treatment1.5 (2.1)4.9 (5.0)
       Control.6 (2.1)1.9 (3.5)
Maine
       Treatment1.4 (1.7)2.9 (4.4)
       Control1.0 (1.7)2.5 (4.1)
GATE II
North Carolina
       Treatment2.1 (3.3)3.5 (4.8)
       Control.5 (1.7)1.8 (3.8)
Virginia
       Treatment3.0 (1.3)5.4 (5.6)
       Control0.4 (1.3)2.0 (3.8)

Intent-to-Treat (ITT) effects on employment and earnings

Project GATEGATE II
PennsylvaniaMinnesotaMaineNorth CarolinaVirginia
Self-employment
       in own business0.028 (0.037)0.102 (0.035)***0.071 (0.069)0.040 (0.030)0.008 (0.037)
       as contractor0.046 (0.027)*−0.026 (0.027)−0.108 (0.053)**0.026 (0.026)0.036 (0.041)
       any self-employment0.073 (0.042)*0.077 (0.038)**−0.038 (0.077)0.066 (0.036)*0.044 (0.048)
Regular employment−0.040 (0.047)−0.050 (0.038)0.134 (0.081)*−0.055 (0.040)−0.062 (0.055)
Any employment Self-employment earnings0.033 (0.040) 4 (49)0.027 (0.030) 47 (99)0.096 (0.068) 252 (171)0.011 (0.037) 62 (55)−0.018 (0.047) -94 (69)
Regular earnings98 (223)-314 (311)852 (404)**37 (124)-666 (504)
Total earnings102 (224)-268 (311)1,112 (402)***99 (132)-760 (508)
Has employees−0.002 (0.023)−0.004 (0.021)0.116 (0.050)**0.013 (0.014)−0.009 (0.016)
Number of employees0.03 (0.09)0.08 (0.10)0.21 (0.21)0.10 (0.08)−0.025 (0.028)

Random assignment of program applicants and survey response

All applicantsTreatment groupControl group
Project GATE
       Pennsylvania722 (100%)352 (49%)370 (51%)
       Minnesota869 (100%)430 (49%)439 (51%)
       Maine226 (100%)106 (47%)120 (53%)
GATE II
       North Carolina1,175 (100%)881 (75%)294 (25%)
       Virginia435 (100%)218 (50%)217 (50%)
Survey respondentsTreatment groupControl group
Project GATE
       Pennsylvania467 [65%]241 [68%]226 [61%]
       Minnesota675 [78%]356 [83%]319 [73%]
       Maine176 [78%]79 [75%]97 [81%]
GATE II
       North Carolina825 [70%]629 [71%]196 [67%]
       Virginia336 [77%]178 [82%]158 [72%]

Local average treatment effects by selected characteristics, Project GATE

By self-employment experienceBy college degree
No experienceWith experienceNo degreeWith degree
PennsylvaniaN = 356N = 111N = 321N = 146
Self-employment
       in own business−0.017 (0.102)0.320 (0.213)0.070 (0.110)0.099 (0.160)
       as contractor0.109 (0.066)*0.146 (0.170)0.161 (0.084)*0.067 (0.106)
       any self-employment0.092 (0.113)0.466 (0.247)*0.232 (0.130)*0.165 (0.171)
Regular employment−0.028 (0.132)−0.205 (0.255)−0.129 (0.156)−0.057 (0.16)
Any employment0.064 (0.113)0.260 (0.224)0.102 (0.135)0.108 (0.146)
Self-emp. Earnings3 (120)151 (349)91 (128)25 (241)
Regular earnings12 (652)673 (1,034)−64 (685)768 (946)
Has employees−0.045 (0.059)0.102 (0.158)−0.060 (0.077)0.106 (0.081)
Number of employees−0.10 (0.25)0.72 (0.51)−0.00 (0.03)0.38 (0.41)
MinnesotaN = 493N = 182N = 347N = 328
Self-employment
       in own business0.172 (0.103)*0.498 (0.183)***0.169 (0.108)0.425 (0.151)***
       as contractor−0.045 (0.083)−0.121 (0.134)−0.046 (0.091)−0.092 (0.108)
       any self-employment0.127 (0.118)0.376 (0.183)**0.122 (0.122)0.333 (0.160)**
Regular employment−0.148 (0.123)−0.150 (0.173)−0.220 (0.126)*−0.024 (0.158)
Any employment−0.022 (0.092)0.226 (0.134)*−0.107 (0.104)0.309 (0.120)**
Self-emp. Earnings154 (343)252 (295)226 (258)122 (480)
Regular earnings−1,290 (1,091)559 (836)−459 (787)−1,093 (1,516)
Has employees0.005 (0.068)−0.024 (0.096)0.068 (0.073)−0.076 (0.083)
Number of employees0.08 (0.33)0.07 (0.46)0.44 (0.38)−0.34 (0.36)
MaineN = 120N = 56N = 117N = 59
Self-employment
       in own business−0.002 (0.222)0.364 (0.273)0.250 (0.186)−0.072 (0.224)
       as contractor−0.123 (0.236)−0.438 (0.247)*−0.095 (0.162)−0.409 (0.204)**
       any self-employment−0.125 (0.271)−0.074 (0.261)0.155 (0.196)−0.482 (0.228)**
Salary employment0.528 (0.266)*0.083 (0.333)0.221 (0.201)0.624 (0.292)**
Any employment0.403 (0.235)*−0.009 (0. 0.354)0.376 (0.283)0.142 (0.314)
Self-Emp. Earnings−128 (607)4,237 (3,752)1,168 (728)957 (2,523)
Salary earnings7,025 (3,139)**−4,925 (3,084)1,885 (1,425)9,280 (4,961)*
Has employees0.120 (0.216)0.531 (0.310)*0.605 (0.191)***0.181 (0.224)
Number of employees0.14 (0.12)1.92 (0.94)*0.98 (0.46)**0.27 (0.41)
By Credit AccessBy Age
Bad CreditGood Credit<45 Years45+ Years
PennsylvaniaN = 256N = 211N = 242N = 225
Self-employment
       in own business0.199 (0.131)−0.032 (0.117)0.177 (0.128)−0.007 (0.123)
       as contractor0.024 (0.094)0.223 (0.083)***0.072 (0.093)0.129 (0.090)
       any self-employment0.223 (0.145)0.192 (0.130)0.249 (0.146)*0.122 (0.140)
Salary employment−0.077 (0.171)−0.135 (0.137)−0.116 (0.175)−0.069 (0.150)
Any employment0.146 (0.147)0.057 (0.119)0.133 (0.146)0.052 (0.135)
Self-Emp. Earnings131 (157)−21 (170)63 (176)13 (160)
Salary earnings97 (738)−50 (718)−769 (923)946 (563)
Has employees0.046 (085)−0.022 (0.069)−0.046 (0.083)0.018 (0.074)
Number of employees0.45 (0.33)−0.10 (0.27)−0.07 (0.31)0.11 (0.30)
MinnesotaN = 197N = 478N = 327N = 348
Self-employment
       in own business−0.063 (0.150)0.375 (0.107)***0.324 (0.153)**0.235 (0.109)**
       as contractor−0.077 (0.142)−0.079 (0.078)−0.086 (0.121)−0.070 (0.083)
       any self-employment−0.140 (0.185)0.296 (0.113)***0.238 (0.167)0.165 (0.118)
Salary employment0.113 (0.206)−0.209 (0.111)*−0.363 (178)**0.023 (0.116)
Any employment−0.027 (0.160)0.087 (0.086)−0.125 (0.131)0.188 (0.096)*
Self-Emp. Earnings147 (284)70 (328)999 (437)**−415 (328)
Salary earnings−1,010 (1,309)−619 (978)−2,096 (1,510)−92 (875)
Has employees−0.132 (0.107)0.025 (0.063)0.027 (0.096)−0.049 (0.065)
Number of employees−0.29 (0.37)0.12 (0.33)−0.30 (0.45)0.10 (0.33)
MaineN = 68N = 108N = 86N = 90
Self-employment
       in own business0.461 (0.220)**−0.068 (0.341)0.191 (0.267)0.157 (0.332)
       as contractor−0.403 (0.238)*−0.138 (0.309)−0.003 (0.291)−0.524 (0.318)
       any self-employment0.058 (0.255)−0.235 (0.352)0.189 (0.295)−0.367 (0.334)
Salary employment−0.054 (0.259)0.596 (0.315)*0.259 (0.249)0.495 (0.301)
Any employment0.034 (0.239)0.361 (0.290)0.448 (0.230)*0.128 (0.286)
Self-Emp. Earnings2,158 (1,888)611 (1,099)354 (776)1,557 (1,405)
Salary earnings1,466 (3,238)5,004 (2,402)**4,209 (1,845)**3,990 (3,365)
Has employees0.597 (0.329)*0.143 (0.376)0.464 (,260)*0.221 (0.433)
Number of employees0.92 (0.52)*0.31 (0.46)1.07 (1.08)0.51 (1.3)

Distribution of counseling sessions and workshops, Project GATE

PennsylvaniaMinnesotaMaine
TreatmentControlTreatmentControlTreatmentControl
Number of individuals2412263563197997
Counseling sessions
      0 sessions0.5780.8980.3880.7930.3670.577
      1–2 sessions0.2200.0530.4190.1160.4430.268
      3+ sessions0.2030.0490.1940.0910.1900.155
Workshops
      0 workshops0.3240.7080.2870.5990.4430.546
      1–3 workshops0.2200.1860.2160.2410.3170.237
      4+ workshops0.4560.1060.4970.1600.2410.217
Counseling, Workshops
      No sessions, no workshops0.2410.6730.1260.5330.1520.412
      No sessions, 1–3 workshops0.1370.1550.0810.1720.1520.082
      No sessions, 4+ workshops0.1990.0710.1800.0880.0630.082
      1–2 sessions, no workshops0.0620.0130.1120.0440.2410.082
      1–2 sessions 1–3 workshops0.0660.0220.1040.0470.1010.082
      1–2 sessions 4+ workshops0.0910.0180.2020.0250.1010.103
      3+ sessions, no workshops0.0210.0220.0480.0220.0510.052
      3+ sessions, 1–3 workshops0.0170.0090.0310.0220.0630.072
      3+ sessions, 4+ workshops0.1660.0180.1150.0470.0760.031

Characteristics of unemployed workers

Unemployed workers in 2003Unemployed workers in 2009
PennsylvaniaMinnesotaMaineNorth CarolinaVirginia†
Unemployment rate0.0640.0490.0510.0980.063
Male0.5270.5790.5150.5570.545
White0.7970.8490.9470.6490.707
Married0.4100.3910.5110.3980.552
18–25 years old0.2150.2580.1940.229–
25–34 years old0.2070.1920.1940.201–
35–44 years old0.2250.2180.2070.186–
45–54 years old0.2070.1920.2420.2170.579
55+ years old0.1470.1400.1630.1670.420
No high school diploma0.1310.1220.1190.1780.170
High school diploma0.5080.4370.5200.4340.373
Some college0.1840.2250.2030.2500.206
College degree0.1760.2200.1590.1390.252
       Less than $25,0000.3760.3190.4230.4490.453
$25,000–$49,9990.2910.2750.2860.2660.212
$50,000–$74,9990.1610.1790.1590.1470.139
$75,000+0.1720.2270.1320.1380.196

Program effects on training take–up

Project GATEGATE II
PennsylvaniaMinnesotaMaineNorth CarolinaVirginia
Any training0.425 (0.042)***0.391 (0.033)***0.279 (0.064)***0.224 (0.039)***0.361 (0.050)***
Workshops only0.100 (043)**–0.004 (0.035)0.021 (0.063)–0.052 (0.034)–0.169 (0.045)***
Counseling only0.047 (0.022)**0.084 (0.025)***0.192 (0.063)***0.062 (0.023)***0.061 (0.029)**
Workshops plus counseling0.278 (0.036)***0.311 (034)***0.066 (0.071)0.205 (0.035)***0.460 (0.045)***
Number of workshops3.8 (0.4)***2.8 (0.3)***0.3 (0.7)1.6 (0.2)***3.4 (0.3)***
Number of counseling sessions0.9 (0.1)***0.9 (0.2)***0.5 (0.3)*1.5 (0.4)***2.6 (0.3)***

Characteristics of survey respondents

Project GATEGATE II
PennsylvaniaMinnesotaMaineNorth CarolinaVirginia
Survey respondents467675176825336
Male0.5330.6100.6020.5250.479
Female0.4670.3900.3980.4750.521
White0.4370.8040.0910.6080.512
Nonwhite0.5630.1960.9090.3920.488
Married0.3560.5470.4600.5350.476
Disabled0.0660.0740.1190.0650.036
18–25 years old0.0280.0160.0170.022–
25–34 years old0.1970.1420.1480.141–
35–44 years old0.2930.3260.3240.250–
45–54 years old0.3620.3750.3810.3220.503
55+ years old0.1200.1410.1310.2650.497
No high school diploma0.0410.0160.0630.0720.010
High school diploma0.2760.1640.2840.3770.083
Some college0.3700.3330.3180.2670.283
College degree0.3130.4860.3350.2840.625
Self-employment experience0.2380.2700.3180.3220.435
Family business0.6680.7870.7560.481–
Relevant work experience0.7920.8270.8070.3880.893
Business plan0.2140.1690.1760.1270.051
Bad/no credit history0.5480.2920.3860.5120.199
Family financial support0.4090.4950.4890.5380.554
Household income
       Less than $25,0000.4110.2150.3640.4490.310
       $25,000–$49,9990.3470.3230.3810.3260.289
       $50,000–$74,9990.1370.2160.1650.1360.137
       $75,000+0.1050.2460.0910.0900.265

Regression results, treatment likelihood

Project GATEGATE II
PennsylvaniaMinnesotaMaineNorth CarolinaVirginia
Male0.006 (0.040)0.050 (0.036)–0.116 (0.073)–0.064 (0.030)**0.101 (0.054)*
White0.044 (0.048)0.048 (0.044)–0.181 (0.114)0.009 (0.031)–0.022 (0.051)
Married0.011 (0.049)–0.003 (0.046)0.126 (0.087)0.012 (0.034)0.001 (0.061)
Disabled0.001 (0.080)0.019 (0.067)0.036 (0.112)–0.065 (0.063)–0.117 (0.142)
Age: 18–25 years–––––
Age: 25–34 years0.144 (0.105)–0.143 (0.138)–0.230 (0.269)–0.171 (0.115)–
Age: 35–44 years0.103 (0.104)–0.172 (0.136)–0.375 (0.263)–0.136 (0.113)–
Age: 45–54 years0.205 (0.106)*–0.241 (0.136)–0.346 (0.264)–0.170 (0.113)–
Age: 55+ years0.076 (0.116)–0.279 (0.145)–0.452 (0.288)–0.120 (0.114)–0.003 (0.049)
No high school diploma–––––
High school diploma–0.080 (0.100)0.070 (0.124)0.017 (0.154)–0.042 (0.057)–0.105 (0.266)
Some college–0.093 (0.099)0.071 (0.121)0.060 (0.156)–0.027 (0.059)0.043 (0.257)
College degree–0.047 (0.104)0.040 (0.121)0.083 (0.160)–0.010 (0.062)0.026 (0.254)
Self–employment experience–0.017 (0.047)–0.025 (0.041)0.047 (0.076)0.008 (0.032)0.065 (0.050)
Family business–0.068 (0.048)0.028 (0.046)–0.026 (0.088)0.008 (0.028)–
Relevant work experience0.062 (0.040)0.035 (0.041)–0.002 (0.083)0.028 (0.030)0.064 (0.076)
Business plan0.015 (0.045)–0.073 (0.045)0.045 (0.095)–0.032 (0.043)–0.166 (0.110)
Bad/no credit history–0.019 (0.043)0.037 (0.040).094 (0.075)–0.021 (0.038)0.032 (0.064)
Family financial support0.040 (0.043)0.065 (0.042)–0.070 (0.078)–0.040 (0.031)0.058 (0.054)
Household income
       Less than $25,000–––––
       $25,000–$49,999–0.018 (0.043)0.083 (0.048)*–0.090 (0.088)0.019 (0.034)–0.057 (0.064)
       $50,000–$74,999–0.087 (0.067)0.090 (0.058)–0.090 (0.088)–0.020 (0.049)–0.101 (0.086)
       $75,000+–0.129 (0.081)0.058 (0.061)0.004 (0.155)0.113 (0.061)*–0.036 (0.075)
Constant0.470 (0.138)***0.416 (0.181)**0.983 (0.383)***0.949 (0.121)***0.380 (0.270)
R–squared0.02970.03290.08810.02120.0334
Observations7228692261,175435

Distribution of counseling sessions and workshops, GATE II

North CarolinaVirginia
TreatmentControlTreatmentControl
Number of individuals629196178158
Counseling sessions
       0 sessions0.5690.8520.3540.886
       1–2 sessions0.1290.0660.1850.076
       3+ sessions0.3020.0820.4610.038
Workshops
       0 workshops0.4610.6380.3200.627
       1–3 workshops0.1910.2190.1740.196
       4+ workshops0.3480.1430.5060.177
Counseling, Workshops
       No sessions, no workshops0.3550.5920.2190.589
       No sessions, 1–3 workshops0.0450.0200.0390.019
       No sessions, 4+ workshops0.0620.0260.0620.019
       1–2 sessions, no workshops0.0940.1680.0450.177
       1–2 sessions 1–3 workshops0.0380.0310.0620.019
       1–2 sessions 4+ workshops0.0590.0200.0670.000
       3+ sessions, no workshops0.1210.0920.0900.120
       3+ sessions, 1–3 workshops0.0460.0150.0840.038
       3+ sessions, 4+ workshops0.1810.0360.3310.019

Regression results, treatment likelihood, survey respondents

Project GATEGATE II
PennsylvaniaMinnesotaMaineNorth CarolinaVirginia
Male0.015 (0.050)0.049 (0.041)−0.134 (0.085)−0.061 (0.035)*0.093 (0.062)
White0.052 (0.061)0.039 (0.051)−0.028 (0.141)0.031 (0.037)−0.031 (0.058)
Married0.005 (0.061)0.016 (0.054)0.074 (0.100)0.016 (0.041)0.032 (0.070)
Disabled0.053 (0.097)−0.001 (0.044)0.009 (0.126)−0.111 (0.071)−0.083 (0.153)
Age: 18–25 years−0.179 (0.151)0.168 (0.161)0.310 (0.301)0.075 (0.129)–
Age: 25–34 years0.001 (0.069)−0.035 (0.062)0.122 (0.125)−0.035 (0.055)–
Age: 35–44 years–––––
Age: 45–54 years0.066 (0.060)−0.067 (0.048)0.026 (0.095)−0.008 (0.045)–
Age: 55+ years−0.043 (0.084)−0.106 (0.067)−0.103 (0.134)0.033 (0.048)−0.016 (0.056)
No high school diploma–––––
High school diploma−0.196 (0.126)0.173 (0.163)−0.139 (0.177)−0.005 (0.068)−0.319 (0.311)
Some college−0.172 (0.124)0.192 (0.159)−0.126 (0.178)0.003 (0.070)−0.092 (0.299)
College degree−0.175 (0.135)0.140 (0.163)−0.060 (0.193)0.014 (0.072)−0.127 (0.295)
Self-employment experience−0.085 (0.058)−0.002 (0.045)−0.018 (0.087)−0.007 (0.038).076 (0.057)
Family business0.069 (0.051)0.028 (0.048)−0.067 (0.098)0.001 (0.034)–
Relevant work experience−0.069 (0.059)0.058 (0.052)0.156 (0.111)0.042 (0.036)0.123 (0.090)
Business plan0.021 (0.059)−0.068 (0.052)0.154 (0.111)0.047 (0.051)−0.141 (0.129)
Bad/no credit history−0.080 (0.053)0.057 (0.046)0.171 (0.098)−0.019 (0.041)0.034 (0.072)
Family financial support0.055 (0.055)0.038 (0.049)−0.021 (0.091)036 (0.037)0.041 (0.063)
Household income
       Less than $25,000–––––
       $25,000–$49,999−0.027 (0.059)0.092 (0.057)*−0.069 (0.101)0.017 (0.041)−0.055 (0.074)
       $50,000–$74,999−0.102 (0.083)0.109 (0.068)−0.046 (0.141)−0.058 (0.057)−0.133 (0.099)
       $75,000+−0.152 (0.098)0.098 (0.070)0.042 (0.173)0.059 (0.067)−0.068 (0.085)
Constant0.786 (0.147)**0.123 (0.193)0.293 (0.254)0.264 (0.080)***0.223 (0.313)
R-squared0.06210.05020.13660.02420.0426

Regression results, likelihood of survey response

Project GATEGATE II
PennsylvaniaMinnesotaMaineNorth CarolinaVirginia
Treatment0.067 (0.036)*0.084 (0.027)***–0.029 (0.057)0.035 (0.030)0.091 (0.040)**
Male–0.042 (0.037)–0.070 (0.029)**–0.097 (0.061)–0.081 (0.028)***–0.057 (0.045)
White–0.020 (0.046)–0.049 (0.035)0.117 (0.094)–0.010 (0.029)–0.018 (0.042)
Married0.010 (0.046)0.081 (0.037)**0.029 (0.072)0.010 (0.031)–0.108 (0.050)**
Disabled0.080 (0.075)0.036 (0.053)–0.137 (0.065)**0.129 (0.057)**0.148 (0.117)
Age: 18–25 years–0.101 (0.098)0.040 (0.108)–0.094 (0.217)0.021 (0.093)–
Age: 25–34 years–0.042 (0.049)–0.080 (0.041)*–0.188 (0.086)**–0.058 (0.042)–
Age: 35–44 years–––––
Age: 45–54 years0.108 (0.046)**0.062 (0.034)*–0.113 (0.070)0.007 (0.043)–
Age: 55+ years0.081 (0.065)0.108 (0.049)**–0.110 (0.097)0.064 (0.046)–
No high school diploma–––––
High school diploma–0.073 (0.094)0.177 (0.099)*–0.059 (0.126)–0.040 (0.049)–0.105 (0.219)
Some college0.041 (0.105)0.149 (0.096)–0.090 (0.127)–0.073 (0.061)–0.007 (0.220)
College degree–0.017 (0.102)0.190 (0.099)*–0.003 (0.146)–0.099 (0.040)**0.067 (0.210)
Self–employment experience0.008 (0.044)0.012 (0.033)–0.037 (0.062)0.023 (0.030)–0.024 (0.041)
Family business0.075 (0.038)**0.077 (0.032)**0.008 (0.068)–0.021 (0.027)–
Relevant work experience–0.008 (0.045)–0.021 (0.037)–0.030 (0.072)–0.034 (0.029)0.042 (0.038)
Business plan–0.074 (0.043)*–0.057 (0.036)–0.018 (0.078)0.002 (0.041)0.013 (0.091)
Bad/no credit history–0.019 (0.040)–0.069 (0.032)**–0.094 (0.062)0.021 (0.028)0.032 (0.024)
Family financial support–0.021 (0.041)0.000 (0.034)–0.002 (0.064)0.032 (0.029)0.015 (0.045)
Household income
       Less than $25,000–––––
       $25,000–$49,999–0.023 (0.043)–0.043 (0.039)–0.090 (0.072)0.076 (0.032)**–0.010 (0.053)
       $50,000–$74,999–0.013 (0.063)–0.096 (0.046)**0.126 (0.103)0.060 (0.044)0.031 (0.071)
       $75,000+0.067 (0.076)–0.070 (0.049)0.145 (0.127)0.170 (0.058)***0.110 (0.062)*
Constant0.609 (0.111)***0.420 (0.121)***0.921 (0.186)***0.804 (0.069)***0.726 (0.224)***
R–squared0.06230.10410.09320.06090.0656

Correlations of key characteristics, treatment cases

Project GATESelf-employment experienceGood creditCollege degree45+ years old
Pennsylvania
       Good credit−0.0201–––
       College degree0.01730.1238––
       45+ years old0.21670.23650.0476–
Minnesota
       Good credit−0.0483–––
       College degree−0.00770.0916––
       45+ years old0.19420.0124−0.0023–
Maine
       Good credit0.0042–––
       College degree0.07110.0261––
       45+ years old0.25180.30440.1541–
GATE IISelf-employment experienceGood CreditCollege Degree45+ years old
North Carolina
       Good credit0.0119–––
       College degree0.03790.1794––
       45+ years old0.14400.15240.0360–
Virginia
       Good credit−0.0328–––
       College degree0.05210.0355––

Characteristics of program applicants

Project GATEGATE II
PennsylvaniaMinnesotaMaineNorth CarolinaVirginia
Number of applicants7228692261,175435
Male0.5460.6270.6280.5580.506
Female0.4540.3730.3720.4420.494
White0.4140.7770.8890.6000.513
Nonwhite0.5860.2230.1110.4000.487
Married0.3410.5140.4430.5170.503
Disabled0.0610.0730.1150.0570.032
18–25 years old0.0390.0170.0180.024–
25–34 years old0.2260.1650.1730.146–
35–44 years old0.3130.3450.3050.275–
45–54 years old0.3140.3540.3810.3170.503
55+ years old0.1080.1190.1240.2370.497
Missing–––0.121–
No high school diploma0.0420.0220.0620.0660.009
High school diploma0.2980.1670.3010.3590.103
Some college0.3810.3580.3360.2430.297
College degree0.2800.4540.3010.2120.591
Self-employment experience0.2260.2570.3320.3130.441
Family business0.6390.7680.7480.491–
Relevant work experience0.7960.8290.8100.3730.885
Business plan0.2350.1810.1810.1160.053
Bad/no credit history0.5730.3310.4290.5340.205
Family financial support0.4180.4800.4730.5210.559
Household income
    Less than $25,0000.4250.2290.4070.4890.308
    $25,000–$49,9990.3520.3270.3670.3100.308
    $50,000–$74,9990.1340.2160.1460.1290.140
    $75,000+0.0890.2280.0800.0720.244

Labor market outcomes

Project GATEGATE II
PennsylvaniaMinnesotaMaineNorth CarolinaVirginia
TreatmentControlTreatmentControlTreatmentControlTreatmentControlTreatmentControl
Self-employment
       in own business0.2030.1680.3430.2350.2530.2580.1640.1170.1290.114
       as contractor0.1040.0660.1210.1440.0890.1540.1290.0920.2080.152
       any self-employment0.3070.2350.4630.3790.3420.4120.2930.2090.3370.266
Regular employment0.4730.5090.3820.4200.4940.3510.4180.4740.4200.500
Any employment0.7800.7430.8460.7990.8350.7630.7100.6840.7570.766
Self-employment earnings112 (525)97 (515)417 (1,286)329 (1,303)425 (1,451)154 (589)152 (748)87 (372)68 (330)148 (836)
Regular earnings1,739 (2,464)1,636 (2,302)2,305 (4,315)2,422 (3,650)2,232 (352)1,389 (1,713)504 (1,658)453 (859)823 (1,610)1,480 (6,366)
Total earnings1,851 (2,493)1,733 (2,302)2,722 (4,383)2,750 (3,735)2,657 (3,180)1,542 (1,752)656 (1,779)540 (894)891 (1,678)1,628 (6,391)
Has employees0.0580.0620.0840.0750.1520.0630.0350.0200.0170.025
Number of employees0.18 (0.94)0.16 (0.88)0.32 (1.33)0.27 (1.32)0.41 (1.14)0.21 (1.41)0.14 (1.13)0.06 (.47)0.02 (0.18)0.04 (0.31)
eISSN:
2193-9004
Language:
English
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Volume Open
Journal Subjects:
Business and Economics, Political Economics, Microeconomics, Macroecomics, Economic Policy, Mathematics and Statistics for Economists, Econometrics
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