The Effects of Human Capital Interventions on Entrepreneurial Performance in Industrialized Countries

B. Hogendoorn, I. Rud, W. Groot, H. Maassen van den Brink

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

This paper provides a systematic review of studies on the effects of human capital interventions on entrepreneurial performance in industrialized countries. We identify 21 experimental and quasi-experimental studies published before September 2018. These studies examine the effects of business training, formal education, and entrepreneurship education. Their performance outcomes include firm profits, firm size, and entrepreneurial earnings. The main finding across these studies is that these interventions do not have statistically significant effects. Formal education is the only exception, showing positive effects on firm profits and entrepreneurial earnings, yet these effects are small in magnitude. Evidence is inconclusive regarding effect duration. These findings stand in stark contrast to correlational studies, which tend to find large positive correlations between human capital interventions and entrepreneurial performance. We therefore conclude that correlational studies tend to overestimate the benefits of human capital interventions. Moreover, our estimates show that the interventions are associated with moderately low additionality.
Original languageEnglish
Pages (from-to)798-826
Number of pages29
JournalJournal of Economic Surveys
Volume33
Issue number3
Early online date2019
DOIs
Publication statusPublished - Jul 2019

JEL classifications

  • o15 - "Economic Development: Human Resources; Human Development; Income Distribution; Migration"
  • j24 - "Human Capital; Skills; Occupational Choice; Labor Productivity"
  • l26 - Entrepreneurship
  • l25 - Firm Performance: Size, Diversification, and Scope

Keywords

  • Causal inference
  • Entrepreneurship
  • Firm performance
  • Returns to education
  • Systematic review
  • ADDITIONALITY
  • EDUCATION
  • ENTERPRISES EVIDENCE
  • IMPACT
  • PROGRAMS
  • ECONOMIC RETURN
  • CONSTRAINTS
  • VARIABLES
  • SELECTION
  • INSTRUMENTS

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