2022/09/18 by Craig McIntosh, McIntosh, Craig, Andrew Zeitlin +1 · 1 voice
Economics, Econometrics and Finance · #Labor market dynamics and wage inequality
paper · doi:10.3368/jhr.0922-12548r1
openalex publication_date 2025/09/09 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/31
<h3>Abstract</h3> We present results of an experiment benchmarking a workforce training program against cash transfers for underemployed young adults in Rwanda. 3.5 years after treatment, the training program enhances productive time use and asset investment, while the cash transfers drive productive assets, livestock values, savings, and subjective well-being. Both interventions have powerful effects on entrepreneurship. But while labor, sales, and profits all go up, the implied wage rate in these businesses is low. Our results suggest that credit is a major barrier to self-employment, but deeper reforms may be required to enable entrepreneurship to provide a transformative pathway out of poverty.