We investigate the impact of a program providing asset transfers and business training to low income individuals in Chile, and asked whether a larger asset transfer would magnify the program's impact. We randomly assigned participation in a large scale, publicly run micro-entrepreneurship program and evaluated its effects over 45 months. The program improved business practices, employment, and labor income. In the short run, self-employment increased by 14.8/25.2 percentage points for a small/large asset transfer. In the long run, individuals assigned to a smaller transfer were 9 percentage points more likely to become wage workers, whereas those assigned to larger transfers tended to remain self-employed.
Outcomes: Self-employment rates, Employment rates, Labor income, Hours worked. These are measured over 45 months post-intervention.
The intervention increases employment and income, with the greatest effect on those who were unemployed or self-employed at baseline (impact on wage earners is only positive for those that are also low income)