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The Impact of Mexico's Retraining Program on Employment and Wages

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  • Revenga, Ana
  • Riboud, Michelle
  • Tan, Hong
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    Abstract

    This article analyzes the impact and effectiveness of the Mexican labor retraining program for unemployed and displaced workers--Programa de Becas de Capacitacion para Trabajadores (PROBECAT). The strategy followed is to compare the post-training labor market experiences of trainees with those of a comparison group--a matched sample of unemployed individuals who were eligible for, but did not participate in PROBECAT. The results of this exercise suggest that participation in PROBECAT reduced the mean duration of unemployment for both men and women trainees and increased the monthly earnings of men, but not of women. The results also indicate that the post-training earnings effect varied systematically by level of education attained, with the largest earnings increases (of about 28 to 37 percent) found for men with six to twelve years of education. Copyright 1994 by Oxford University Press.

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    Bibliographic Info

    Article provided by World Bank Group in its journal World Bank Economic Review.

    Volume (Year): 8 (1994)
    Issue (Month): 2 (May)
    Pages: 247-77

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    Handle: RePEc:oup:wbecrv:v:8:y:1994:i:2:p:247-77

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    Cited by:
    1. Marcelo Delajara & Samuel Freije & Isidro Soloaga, 2006. "An Evaluation of Training for the Unemployed in Mexico," IDB Publications 35098, Inter-American Development Bank.
    2. Calderón-Madrid, Angel & Trejo, Belem, 2002. "The Impact of the Mexican Training Program for Unemployed Workers on Re-employment Dynamics and on Earnings," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A2-1, International Conferences on Panel Data.
    3. David S. Kaplan & Raymond Robertson & Gabriel Martínez González, 2005. "What Happens to Wages after Displacement?," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
    4. Wodon, Quentin & Minowa, Mari, 2001. "Training for the Urban Unemployed: A Reevaluation of Mexico's Training Program, Probecat," MPRA Paper 12310, University Library of Munich, Germany.
    5. Kaplan, David S. & Gonzalez, Gabriel Martinez & Robertson, Raymond, 2007. "Mexican employment dynamics : evidence from matched firm-worker data," Policy Research Working Paper Series 4433, The World Bank.
    6. Godtland, Erin & Sadoulet, Elisabeth & de Janvry, Alain & Murgai, Rinku & Ortiz, Oscar, 2003. "The impact of farmer-field-schools on knowledge and productivity : a study of potato farmers in the Peruvian Andes," CUDARE Working Paper Series 963, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
    7. Dar, Amit & Gill, Indermit S, 1998. "Evaluating Retraining Programs in OECD Countries: Lessons Learned," World Bank Research Observer, World Bank Group, vol. 13(1), pages 79-101, February.
    8. Quentin Wodon & Rodrigo Castro & Kihoon Lee, 2001. "Poverty in Latin America: Trends (1986-1998) and Determinants," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 38(114), pages 127-153.
    9. Angel Calderon Madrid, 2000. "Job Stability and Labor Mobility in Urban Mexico: A Study Based on Duration Models and Transition Analysis," Research Department Publications 3117, Inter-American Development Bank, Research Department.

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