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Demand-Driven Training and Job Turnover: The Effects of Brazil’s Pronatec-MDIC at Firm and Worker Level

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  • Quintana, Rodrigo
  • Cravo, Tulio

Abstract

This paper explores for the first time the impact of a demand-driven training program on labor turnover at both firm and worker level. Launched in 2014 by the Ministry of Development, Industry and Trade (MDIC in Portuguese), Pronatec-MDIC allows firms to demand courses which some of their workers apply to. Difference-in-difference estimates find that workers who enroll in the courses demanded by their employers increase their job tenure by 8.89 months compared to non-enrolled nominees. However, those who complete the training stay in the job 3.36 months less, on average, than those who do not. At firm level, results show that having a course approved is associated with higher turnover in the short run when considering subgroups of workers who participate in Pronatec-MDIC. The effect dissipates in the third year, suggesting that it takes time for firms to adjust their labor stock after course demand but stabilize afterwards.

Suggested Citation

  • Quintana, Rodrigo & Cravo, Tulio, 2019. "Demand-Driven Training and Job Turnover: The Effects of Brazil’s Pronatec-MDIC at Firm and Worker Level," IDB Publications (Working Papers) 9688, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:9688
    DOI: http://dx.doi.org/10.18235/0001748
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    More about this item

    Keywords

    Education and Training; Turnover; Human Capital;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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