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Training the disadvantaged youth and labor market outcomes: Evidence from Bangladesh

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  • Das, Narayan

Abstract

This paper estimates the effects of a youth training program in Bangladesh on labor market outcomes. The program, organized as a randomized controlled trial, provides on-the-job and classroom training to disadvantaged unemployed youth. ITT results show that six months after the intervention, on-the-job training increases labor market participation by 16 percentage points and earnings by 23%. The effect on employment declines in the long-run, after 22 months, but the effect on earnings is sustained as the program induces a shift from casual work to wage employment. Adding classroom training over on-the-job training has no short term effect on aggregate employment and earnings but it has more sustained effect.

Suggested Citation

  • Das, Narayan, 2021. "Training the disadvantaged youth and labor market outcomes: Evidence from Bangladesh," Journal of Development Economics, Elsevier, vol. 149(C).
    • Handle: RePEc:eee:deveco:v:149:y:2021:i:c:s0304387820301607
    DOI: 10.1016/j.jdeveco.2020.102585
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    Cited by:

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    2. Dávila, Dayana & Alvarado, Rafael, 2022. "Análisis del impacto de la Ley Orgánica para la Promoción del Trabajo Juvenil, Regulación Excepcional de la Jornada de Trabajo, Cesantía y Seguro de Desempleo, sobre el desempleo juvenil en Ecuador," MPRA Paper 113709, University Library of Munich, Germany.
    3. Vandenberg, Paul & Laranjo, Jade, 2021. "Vocational training and labor market outcomes in the Philippines," International Journal of Educational Development, Elsevier, vol. 87(C).

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    Keywords

    Training; Earnings; Youth; Bangladesh;
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