to permanent increases in income. One of the key insights from the model is that credit constraints are only an obstacle to productive entrepreneurship for a subset of individual types; less productive types are unable to sustain a business in any steady state. Nonetheless, savings constraints can also affect the investment decisions and occupational choices of lower productivity types who receive one-off infusions of funding or capital; though these individuals cannot sustain businesses, they may invest in capital and launch unproductive firms because enterprise capital is a technology for saving, albeit at a negative interest rate. Thus, short-term impacts of one-off transfers on entrepreneurship should not be taken as evidence that a program relieved a credit constraint or addressed a poverty trap; the critical issue is whether impacts on income persist over the longer-term.

We find that both the franchise treatment and the grant treatment led to substantial increases in income in the year after the interventions. Point estimates suggest impacts that are both economically and statistically significant: the franchise treatment increased weekly income by 30 percent, up 1.6 US dollars from a mean of 5.5 dollars in the control group (p-value 0.035); the grant treatment increased weekly income by 3.2 dollars (p-value 0.008) or 56 percent. As expected, these impacts appear to be driven by a shift from paid work to self-employment; women assigned to either the franchise or the grant treatment are approximately 10 percentage points more likely to be self-employed than those in the control group. Women assigned to the grant treatment also increased their labor supply (hours worked) substantially.

Though both interventions increased income in the relatively short-run, data from endline surveys conducted between 14 and 22 months after treatment indicate that the observed impacts on income disappeared in the second year after the program(s). At endline, women assigned to either the franchise treatment or the grant treatment are more likely to be selfemployed than women in the control group, but the treatments are not associated with increases in income or labor supply. In addition, we find no impacts of treatment on food security, expenditures, living conditions, or empowerment at endline. Seen through the lens of our model, these findings are consistent with the existence of savings constraints; large impacts on income and occupational choice that disappear relatively quickly make sense if enterprise capital is one of the few viable savings technologies available to young women in a poor urban area. However, our findings do not suggest that credit constraints had been preventing productive entrepreneurs from launching profitable, sustainable businesses.

This paper makes several contributions. First, we measure the impact of an active labor market program on young women in an urban area in a developing country. Here, we contribute to an active literature on active labor market programs and youth unemployment.<sup>4</sup> Our work is most closely related to Bandiera _et al_ . (2014) and Adoho _et al_ . (2014), who also

> 4 See Kluve _et al_ . (2016) for a recent survey.

4