Advanced Search
MyIDEAS: Login to save this paper or follow this series

An Econometric Cost-Benefit Analysis of Argentina's Youth Training Program

Contents:

Author Info

  • Víctor Elías
  • Fernanda Ruiz Núñez
  • Ricardo Cossa
  • David Bravo

Abstract

The Youth Training Program (YTP) was an important component of Argentina’s active labor policy of the 1990s. The program offered courses of three months’ duration, divided equally between lectures and practical experience, and targeted young people, most of whom were not employed and had a low level of education. The program was offered by different institutions chosen through a bidding process and included courses in the fields of agriculture, manufacture, construction and services. This paper conducts an econometric cost-benefit analysis of the fifth round of the YTP. Benefits (wage increases, increase in likelihood of employment, increase in earnings) are estimated using non-matching (Before and After, Cross Section and Difference in Difference) and matching techniques based on propensity score estimate (Nearest Neighbor, Kernel, Local Linear Regression) in order to avoid selection bias. Estimates of the ATE and TT effects are also provided. A sample consisting of 1,670 beneficiaries and a similarly-sized comparison group provided the information necessary to apply the methodology. Benefit estimates are made for the aggregate, by gender and for both youth and adults. Regional differences are also provided. The cost includes direct and indirect components and the alternative cost of beneficiaries reducing their contributions to output during the program. Estimates of rate of return are provided based on the previous benefit and cost estimation. In general, the results support an estimate of 10 percent of return. This looks reasonable if it is compared with the very low rate of return of education estimated separately for the beneficiaries group. Finally, the management of the program is evaluated.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.iadb.org/research/pub_hits.cfm?pub_id=R-482&pub_file_name=pubR-482.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 3174.

as in new window
Length:
Date of creation: Nov 2004
Date of revision:
Handle: RePEc:idb:wpaper:3174

Contact details of provider:
Postal: 1300 New York Avenue, NW, Washington, DC 20577
Phone: 202-623-1000
Email:
Web page: http://www.iadb.org/res
More information through EDIRC

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
  2. Heckman, J.J. & Hotz, V.J., 1988. "Choosing Among Alternative Nonexperimental Methods For Estimating The Impact Of Social Programs: The Case Of Manpower Training," University of Chicago - Economics Research Center 88-12, Chicago - Economics Research Center.
  3. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc.
  4. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  5. James J. Heckman & Jeffrey A. Smith, 1998. "Evaluating the Welfare State," NBER Working Papers 6542, National Bureau of Economic Research, Inc.
  6. James J. Heckman & Justin L. Tobias & Edward Vytlacil, 2000. "Simple Estimators for Treatment Parameters in a Latent Variable Framework with an Application to Estimating the Returns to Schooling," NBER Working Papers 7950, National Bureau of Economic Research, Inc.
  7. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-59, July.
  8. Jalan, Jyotsna & Ravallion, Martin, 2003. "Estimating the Benefit Incidence of an Antipoverty Program by Propensity-Score Matching," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(1), pages 19-30, January.
  9. Heckman, James J & Smith, Jeffrey, 1997. "Making the Most Out of Programme Evaluations and Social Experiments: Accounting for Heterogeneity in Programme Impacts," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 487-535, October.
  10. 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.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Galdo, Jose & Chong, Alberto, 2012. "Does the quality of public-sponsored training programs matter? Evidence from bidding processes data," Labour Economics, Elsevier, vol. 19(6), pages 970-986.
  2. Betcherman, Gordon & Godfrey, Martin & Puerto, Susana & Rother, Friederike & Stavreska, Antoneta, 2007. "A review of interventions to support young workers : findings of the youth employment inventory," Social Protection Discussion Papers 41412, The World Bank.
  3. Pia Peeters & Wendy Cunningham & Gayatri Acharya & Arvil Van Adams, 2009. "Youth Employment in Sierra Leone : Sustainable Livelihood Opportunities in a Post-conflict Setting," World Bank Publications, The World Bank, number 2599, August.
  4. Attanasio, Orazio & Kugler, Adriana & Meghir, Costas, 2009. "Subsidizing Vocational Training for Disadvantaged Youth in Developing Countries: Evidence from a Randomized Trial," IZA Discussion Papers 4251, Institute for the Study of Labor (IZA).
  5. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Entering New Country and Product Markets: Does Export Promotion Help?," IDB Publications 36738, Inter-American Development Bank.
  6. Orazio Attanasio & Adriana Kugler & Costas Meghir, 2008. "Training Disadvantaged Youth in Latin America: Evidence from a Randomized Trial," NBER Working Papers 13931, National Bureau of Economic Research, Inc.
  7. Fares, Jean & Puerto, Olga Susana, 2009. "Towards comprehensive training," Social Protection Discussion Papers 52188, The World Bank.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:idb:wpaper:3174. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Bazan).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.