The medium-term impact of entrepreneurship education on labor market outcomes: Experimental evidence from Tunisia

Despite the widespread popularity of entrepreneurship education, there is thin evidence on its effectiveness in improving employment outcomes over the medium to long-term. A potential time lag between entrepreneurial intentions and actions is sometimes presented as a reason why employment impacts are rarely observed. Based on a randomized control trial among university students in Tunisia, this paper studies the medium-term impacts of entrepreneurship education four years after students’ graduation. The paper complements earlier evidence that documented small short-term impacts on entry into self-employment and aspirations toward the future one year after graduation. The medium-term results show that the impacts of entrepreneurship education were short-lived. The intervention led to a temporary increase in business ideas and in nascent entrepreneurship. However, there is no sustained impact on self-employment or employment outcomes four years after graduation. The intervention induced some lasting impacts on business knowledge, but not on business networks. A large share of graduates reports financial constraints as the most prevailing barrier to entrepreneurship.

Policy implications 
Lack of business knowledge might not be the main constraint to entrepreneurship for highly educated young men and women. So policies to promote entrepreneurship among high-skilled youths might need to tackle other barriers like access to resources. The entrepreneurship track does not seem to better align students’ skills with employers’ needs or improve their prospect of finding wage jobs.
Reference 
Alaref, J., Brodmann, S. and Premand, P., 2020. The medium-term impact of entrepreneurship education on labor market outcomes: Experimental evidence from university graduates in Tunisia. Labour Economics, 62, p.101787.