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Can German vocational training combat skill shortages in developing countries? Evidence from dual training system in the Philippines:

Author

Listed:
  • Yamauchi, Futoshi
  • Kim, Taejong
  • Lee, Kye Woo
  • Tiongco, Marites

Abstract

This paper estimates the impacts of the Philippine Dual Training System (DTS) on labor market outcomes using a recent survey that tracked graduates from DTS and non-DTS programs provided by vocational training institutes. DTS programs partner with local employers to combine on-the-job training (OJT) with the conventional school- or center-based instruction, while non-DTS programs consist solely of the latter. The estimation results in Fuzzy Regression Discontinuity Design show a significantly positive impact on the most-recent monthly earnings. The impact significantly increases with the OJT intensity, measured by the number of hours of in-company OJT. The above results imply that the role played by OJT is essential to support higher earnings for DTS graduates.

Suggested Citation

  • Yamauchi, Futoshi & Kim, Taejong & Lee, Kye Woo & Tiongco, Marites, 2018. "Can German vocational training combat skill shortages in developing countries? Evidence from dual training system in the Philippines:," IFPRI discussion papers 1744, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1744
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    More about this item

    Keywords

    PHILIPPINES; SOUTH EAST ASIA; ASIA; labor market; vocational training; human capital; investment; training programs; on-the-job training; economic development; Dual Training System (DTS); J24 Human Capital; Skills; Occupational Choice; Labor Productivity; O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration; M53 Personnel Economics: Training;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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