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The Impact of Training Policies in Latin America and the Caribbean: The Case of Programa Joven

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  • Cristian Aedo
  • Sergio Nuñez

Abstract

This paper evaluates Programa Joven, a training program conducted by Argentina`s Ministerio del Trabajo. The paper adapts and applies a non-experimental evaluation methodology to answer the following questions: (1) Did Programa Joven increase the labor income of the trainees? (2) Did Programa Joven increase the probability of employment? (3) What was the rate of return to dollars spent on Programa Joven? The basic methodology used was the Matching Estimators approach. The application of this methodology requires two steps: first, the estimation of a model of program participation (propensity scores), and second, conditional upon the estimated propensity scores, the use of matching estimators to calculate the impact of the program. Three different information sources were used to estimate the propensity scores. These different information sources permitted the analysis of an additional question: how sensitive are program impact estimates to different propensity score specifications? This question has not been addressed by the previous literature but is addressed here. The paper hypothesizes that impact estimates are in fact sensitive to different propensity score specifications. Additionally, the paper reports and compares the propensity scores estimated from each of these data sources, and then estimates the program impact on earnings and employment based upon these propensity scores. Finally, the authors carry out a cost-benefit analysis of Programa Joven based upon cost information and program impact estimates (benefits).

Suggested Citation

  • Cristian Aedo & Sergio Nuñez, 2004. "The Impact of Training Policies in Latin America and the Caribbean: The Case of Programa Joven," Research Department Publications 3175, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:3175
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    References listed on IDEAS

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    1. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-620, September.
    2. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    3. James J. Heckman & Jeffrey Smith & Nancy Clements, 1997. "Making The Most Out Of Programme Evaluations and Social Experiments: Accounting For Heterogeneity in Programme Impacts," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 487-535.
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    5. 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.
    6. James J. Heckman & Jeffrey A. Smith, 1998. "Evaluating the Welfare State," NBER Working Papers 6542, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Angel-Urdinola, Diego F. & Semlali, Amina & Brodmann, Stefanie, 2010. "Non-public provision of active labor market programs in Arab- Mediterranean countries : an inventory of youth programs," Social Protection Discussion Papers and Notes 55673, The World Bank.
    2. 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 of Labor Economics (IZA).

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