Generating Skilled Self-Employment in Developing Countries: Experimental Evidence from Uganda *
Abstract
We study a government program in Uganda designed to help the poor and unemployed become self-employed artisans, increase incomes, and thus promote social stability. Young adults in Uganda’s conflict-affected north were invited to form groups and submit grant proposals for vocational training and business start-up. Funding was randomly assigned among screened and eligible groups. Treatment groups received unsupervised grants of $382 per member. Grant recipients invest some in skills training but most in tools and materials. After four years, half practice a skilled trade. Relative to the control group, the program increases business assets by 57%, work hours by 17%, and earnings by 38%. Many also formalize their enterprises and hire labor. We see no effect, however, on social cohesion, antisocial behavior, or protest. Effects are similar by gender but are qualitatively different for women because they begin poorer (meaning the impact is larger relative to their starting point) and because women’s work and earnings stagnate without the program but take off with it. The patterns we observe are consistent with credit constraints.
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Blattman et al. [2014] find that the resultant increase in earnings imply an annual return on capital of 35% on average.
“and that the resultant increase in earnings imply an annual return on capital of 35 % on average.”
From Women's Empowerment in Action: Evidence from a Randomized Control Trial in Africa (2020) · cites this paper as Blattman et al. [2014]
There are many differences between treated individuals in the ELA and YOP programs: the YOP targets both genders and those aged 16 to 35; individuals form groups to apply for the unconditional transfers; the per person transfer is $374.
“There are of course many di¤erences between the treated individuals in the ELA and YOP programs: the YOP targets both genders and those aged 16 to 35; individuals form groups to apply for the unconditional transfers; the per person transfer $374 .”
From Women's Empowerment in Action: Evidence from a Randomized Control Trial in Africa (2020) · cites this paper as Blattman et al. [2014]
Blattman et al. [2014] find that almost 80% of youth in the Youth Opportunities program chose to spend unconditional cash transfers on acquiring vocational skills and tools.
“They …nd that almost 80 % of youth chose to spend these transfers on acquiring vocational skills and tools”
From Women's Empowerment in Action: Evidence from a Randomized Control Trial in Africa (2020) · cites this paper as Blattman et al. [2014]
Blattman, Fiala, and Martinez (2014) find a program in Uganda with grants of approximately US$382 per member generates increases in skilled self-employment and incomes for recipients, but only minor increases in employment in these firms.
“Blattman, Fiala, and Martinez ( 2014 ) considers a program in Uganda where groups received grants of approximately US$382 per member, and finds this generates increases in skilled self-employment and in incomes for the recipients, but only minor increases in employment in these firms.”
From Identifying and Spurring High-Growth Entrepreneurship: Experimental Evidence from a Business Plan Competition (2017) · cites this paper as Blattman, Fiala, and Martinez (2014)
Cites
Experimental Analysis of Neighborhood Effects
Kling, J. R., Liebman, J. B., & Katz, L. F. (2007) · Econometrica · doi:10.1111/j.1468-0262.2007.00733.x · Cited by 2,719 · see citing works
Attanasio, O., Kugler, A., & Meghir, C. (2011) · American Economic Journal: Applied Economics · doi:10.1257/app.3.3.188 · Cited by 332 · see citing works
Lost but Not Forgotten: Attrition and Follow-up in the Indonesia Family Life Survey
Thomas, D., Frankenberg, E., & Smith, J. P. (2001) · The Journal of Human Resources · doi:10.2307/3069630 · Cited by 200 · see citing works
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McKenzie, D. (2017) · American Economic Review · doi:10.1257/aer.20151404 · Cited by 333 · see citing works
“Blattman et al. (2014) considers a program in Uganda where groups received grants of approximately US$382 per member, and finds this generates increases in skilled self-employment and in incomes for the recipients, but only minor increases in employment in these firms.”
BackgroundWomen's Empowerment in Action: Evidence from a Randomized Control Trial in Africa
Bandiera, O., Buehren, N., Burgess, R., Goldstein, M., Gulesci, S., Rasul, I., & Sulaiman, M. (2020) · American Economic Journal: Applied Economics · doi:10.1257/app.20170416 · Cited by 311 · see citing works
Kluve, J., Puerto, S., Robalino, D., Romero, J. M., Rother, F., Stöterau, J., Weidenkaff, F., & Witte, M. (2017) · Campbell Systematic Reviews: Better Evidence for a Better World · doi:10.4073/csr.2017.12 · Cited by 106 · see citing works
Do Youth Employment Programs Improve Labor Market Outcomes? A Systematic Review
Kluve, J., Puerto, S., Robalino, D. A., Romero, J., Rother, F., Stöterau, J., Weidenkaff, F., & Witte, M. (2016) · SSRN Electronic Journal · doi:10.2139/ssrn.2849748 · Cited by 62 · see citing works
Stimulating Microenterprise Growth: Results from a Loans, Grants and Training Experiment in Uganda
Fiala, N. (2013) · SSRN Electronic Journal · doi:10.2139/ssrn.2358086 · Cited by 37 · see citing works
Self-citationReducing Crime and Violence: Experimental Evidence on Adult Noncognitive Investments in Liberia
Blattman, C., Jamison, J. C., & Sheridan, M. (2016) · doi:10.1596/1813-9450-7648 · Cited by 27 · see citing works
Self-citationProviding Out-of-School Girls with Skills: A Review of the Global Evidence
Khan, A., & Mupuwaliywa, M. (2015) · doi:10.1596/23868 · Cited by 1 · see citing works
- Authors
- Blattman, C., Fiala, N., & Martinez, S.
- Affiliations
- Columbia University (US)
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 2013-12-15
- Volume
- 129
- Issue
- 2
- Pages
- 697-752
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W2121870456
- Cited by
- 464
- References
- 3
- Citations by year
- 2026: 26 · 2025: 29 · 2024: 49 · 2023: 39 · 2022: 35 · 2021: 32 · 2020: 34 · 2019: 38 · 2018: 43 · 2017: 39 · 2016: 41 · 2015: 23 · 2014: 32 · 2013: 3 · 2012: 1
- FWCI
- 78.30
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Quarterly Journal of Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Microfinance and Financial Inclusion
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Entrepreneurship Studies and Influences
- Social Sciences › Education › Vocational and Entrepreneurial Education
- Keywords
- self-employment, craft training, microfinance, unconditional cash transfers, vocational education, startups, conflict zones, youth unemployment, women's employment, credit constraints, earnings, social cohesion, Uganda
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