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Learning and Earning: Evidence from a Randomized Evaluation in India

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Author Info

  • Pushkar Maitra

    (Monash University)

  • Subha Mani

    (Fordham University)

Abstract

This paper estimates the short-and-medium-run effects of participating in a subsidized vocational training program aimed at improving labor market outcomes of women residing in low-income households in a developing country. We combine pre-intervention data with two rounds of post-intervention data from a field experiment to quantify the short-and-medium-run effects of the program. In the short-run, we find that program participants are significantly more likely to be employed, work additional hours, and earn more. These short-run impact estimates are all sustained in the medium-run. We also identify credit constraints, local access, and lack of proper child care support as important barriers to program participation and completion. We are able to rule out two alternative mechanisms -- signalling and change in behavior that can drive these findings. Finally, a simple cost-benefit analysis suggests that the program is highly cost effective.

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Bibliographic Info

Paper provided by Fordham University, Department of Economics in its series Fordham Economics Discussion Paper Series with number dp2013-02.

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Date of creation: 2013
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Handle: RePEc:frd:wpaper:dp2013-02

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Web page: http://www.fordham.edu/economics/
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Keywords: Vocational training; Field Experiment; Panel data; India;

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  1. Hanming Fang & Giuseppe Moscarini, 2004. "Morale Hazard," Yale School of Management Working Papers ysm386, Yale School of Management.
  2. Philipp Köllinger & Maria Minniti & Christian Schade, 2005. ""I Think I Can, I Think I Can": Overconfidence and Entrepreneurial Behavior," Discussion Papers of DIW Berlin 501, DIW Berlin, German Institute for Economic Research.
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  7. Ernst Fehr & Lorenz Goette, 2007. "Do Workers Work More if Wages Are High? Evidence from a Randomized Field Experiment," American Economic Review, American Economic Association, vol. 97(1), pages 298-317, March.
  8. Macours, Karen & Premand, Patrick & Vakis, Renos, 2012. "Transfers, Diversification and Household Risk Strategies: Experimental evidence with lessons for climate change adaptation," CEPR Discussion Papers 8940, C.E.P.R. Discussion Papers.
  9. Kaivan Munshi & Mark Rosenzweig, 2006. "Traditional Institutions Meet the Modern World: Caste, Gender, and Schooling Choice in a Globalizing Economy," American Economic Review, American Economic Association, vol. 96(4), pages 1225-1252, September.
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  12. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
  13. Dasgupta, Utteeyo & Gangadharan, Lata & Maitra, Pushkar & Mani, Subha & Subramanian, Samyukta, 2011. "Selection into skill accumulation: evidence using observational and experimental data," MPRA Paper 32383, University Library of Munich, Germany.
  14. Pablo Ibarraran & David Rosas Shady, 2009. "Evaluating the impact of job training programmes in Latin America: evidence from IDB funded operations," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 1(2), pages 195-216.
  15. David Card & Pablo Ibarraran & Ferdinando Regalia & David Rosas & Yuri Soares, 2007. "The Labor Market Impacts of Youth Training in the Dominican Republic: Evidence from a Randomized Evaluation," NBER Working Papers 12883, National Bureau of Economic Research, Inc.
  16. Marco Castillo & Ragan Petrie & Maximo Torero, 2007. "On The Preferences of Principals and Agents," Experimental Economics Center Working Paper Series 2007-12, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
  17. Orazio Attanasio & Adriana Kugler & Costas Meghir, 2011. "Subsidizing Vocational Training for Disadvantaged Youth in Colombia: Evidence from a Randomized Trial," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 188-220, July.
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  19. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September.
  20. Blom, Andreas & Saeki, Hiroshi, 2011. "Employability and skill set of newly graduated engineers in India," Policy Research Working Paper Series 5640, The World Bank.
  21. Becketti, Sean, et al, 1988. "The Panel Study of Income Dynamics after Fourteen Years: An Evaluatio n," Journal of Labor Economics, University of Chicago Press, vol. 6(4), pages 472-92, October.
  22. David S. Lee, 2009. "Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects," Review of Economic Studies, Oxford University Press, vol. 76(3), pages 1071-1102.
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Cited by:
  1. Pugatch, Todd, 2012. "Safety Valve or Sinkhole? Vocational Schooling in South Africa," IZA Discussion Papers 7015, Institute for the Study of Labor (IZA).
  2. Utteeyo Dasgupta & Subha Mani & Lata Gangadharan & Pushkar Maitra & Samyukta Subramanian, 2012. "Choosing to be Trained: Evidence from a Field Experiment," Fordham Economics Discussion Paper Series dp2012_01, Fordham University, Department of Economics.
  3. Hirshleifer, Sarojini & McKenzie, David & Almeida, Rita & Ridao-Cano, Cristobal, 2014. "The impact of vocational training for the unemployed : experimental evidence from Turkey," Policy Research Working Paper Series 6807, The World Bank.

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