Abstract

Since the 90ties several countries have launched numerous schemes to promote entrepreneurship. Two of those are self-employment training and coaching schemes were established to foster self-employment activities. In Germany these schemes became part of the active labour market policy to enhance the individual capabilities. However, only little is known concerning the treatment assignment and the (causal) treatment effects. One major issue in the estimation of causal effects is the potential bias caused by selective treatment assignment. Two effects may cause this bias: First, individuals with fewer capabilities may value training and coaching schemes as a necessary option to reduce deficits. This may lead to a systematic self-selection bias. Second, the case-managers advice individuals to participate in certain programmes. If this advice correlates with knowledge and capabilities of the nascent entrepreneurs this may cause a screening effect.

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