Role models or individual consulting: The impact of personalizing micro-entrepreneurship training

Jeanne Lafortune, Julio Riutort, José Tessada

Research output: Contribution to journalArticlepeer-review

34 Scopus citations

Abstract

Using a randomized experiment in Chile, we study the impact role models have in the context of a training program for micro-entrepreneurs. We show that being in a group randomly chosen to be visited by a successful alumnus of the program increases household income one year after, mostly due to increased business participation and business income. We also randomized the provision of personalized "consulting sessions" vis-à-vis group sessions, and observe similar effects on income, with the role model intervention being significantly more cost-effective and better suited for less experienced businesses.

Original languageEnglish
Pages (from-to)222-245
Number of pages24
JournalAmerican Economic Journal: Applied Economics
Volume10
Issue number4
DOIs
StatePublished - 1 Oct 2018
Externally publishedYes

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