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Technical Education, Non-cognitive Skills and Labor Market Outcomes: Experimental Evidence from Brazil

Author

Listed:
  • Camargo Juliana

    (Centers for Learning on Evaluation and Results, Brazil and Lusophone Africa, Fundação Getúlio Vargas (FGV EESP Clear), 286, Itapeva Street, São Paulo, SP, 01332-000, Brazil.)

  • Lima Lycia

    (School of Business Administration, Fundação Getúlio Vargas (FGV EAESP) and Centers for Learning on Evaluation and Results, Brazil and Lusophone Africa, Fundação Getúlio Vargas (FGV EESP Clear), 286, Itapeva Street, São Paulo, SP, 01332-000, Brazil.)

  • Riva Flavio

    (School of Business Administration, Fundação Getúlio Vargas (FGV EAESP), 286, Itapeva Street, São Paulo, SP, 01332-000, Brazil.)

  • Souza André Portela

    (School of Economics, Fundação Getúlio Vargas (FGV EESP) and Centers for Learning on Evaluation and Results, Brazil and Lusophone Africa, Fundação Getúlio Vargas (FGV EESP Clear), 286, Itapeva Street, São Paulo, SP, 01332-000, Brazil.)

Abstract

This paper describes the results from an evaluation of a public policy that offers scholarships to current and former public high school students, so that they can attend technical and vocational education courses free of charge. We use a waiting list randomized controlled trial in four municipalities in a southern Brazilian State (Santa Catarina) to quantify the effects of the program on school progression, labor market outcomes and non-cognitive skills. Our intention-to-treat estimates reveal substantial gender heterogeneity two years after program completion. Women experienced large gains in labor market outcomes and non-cognitive skills. Employment rose by 21 percentage points (or approximately 33%) and the gains in earnings are of more than 50%. Also, women who received the offer scored 0.5σ higher on the synthetic index of non-cognitive skills and 0.69σ higher on an extraversion indicator. We find no effects on the male sub-sample. These findings corroborate the evidence on gender heterogeneity in the labor market effects of technical and vocational education programs. We also perform a series of exercises to explore potential channels through which these effects arise.

Suggested Citation

  • Camargo Juliana & Lima Lycia & Riva Flavio & Souza André Portela, 2021. "Technical Education, Non-cognitive Skills and Labor Market Outcomes: Experimental Evidence from Brazil," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-34, January.
    • Handle: RePEc:vrs:izajle:v:10:y:2021:i:1:p:1-34:n:2
    DOI: 10.2478/izajole-2021-0002
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    More about this item

    Keywords

    Vocational Education; Human Capital; Non-cognitive Skills; Labor Market Outcomes;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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