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Subsidizing Vocational Training for Disadvantaged Youth in Developing Countries: Evidence from a Randomized Trial

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Author Info
Attanasio, Orazio () (University College London)
Kugler, Adriana () (University of Houston)
Meghir, Costas () (University College London)

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Abstract

This paper evaluates the impact of a randomized training program for disadvantaged youth introduced in Colombia in 2005. This randomized trial offers a unique opportunity to examine the impact of training in developing countries. We use originally collected data on individuals randomly offered and not offered training. The program raises earnings and employment, especially for women. Women offered training earn 18% more and have a 0.05 higher probability of employment than those not offered training, mainly in formal sector jobs. Cost-benefit analysis of these results suggests that the program generates much larger net gains than those found in developed countries.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4251.

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Length: 46 pages
Date of creation: Jun 2009
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Handle: RePEc:iza:izadps:dp4251

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Related research
Keywords: vocational training; randomized trials;

Other versions of this item:

Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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References listed on IDEAS
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  1. Kugler, Adriana D., 2005. "Wage-shifting effects of severance payments savings accounts in Colombia," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 487-500, February. [Downloadable!] (restricted)
  2. Alberto Chong & Jose Galdo, 2006. "Does the Quality of Training Programs Matter? Evidence from Bidding Processes Data," IZA Discussion Papers 2202, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
    Other versions:
  4. Abhijit V. Banerjee & Shawn Cole & Esther Duflo & Leigh Linden, 2007. "Remedying Education: Evidence from Two Randomized Experiments in India," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 1235-1264, 08. [Downloadable!] (restricted)
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  5. 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. [Downloadable!] (restricted)
  6. Richard Blundell & Amanda Gosling & Hidehiko Ichimura & Costas Meghir, 2007. "Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds," Econometrica, Econometric Society, vol. 75(2), pages 323-363, 03. [Downloadable!] (restricted)
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  7. Cristian Aedo & Sergio Nuñez, 2004. "The Impact of Training Policies in Latin America and the Caribbean: The Case of Programa Joven," RES Working Papers 3175, Inter-American Development Bank, Research Department. [Downloadable!]
  8. Víctor Elías & Fernanda Ruiz Núñez & Ricardo Cossa & David Bravo, 2004. "An Econometric Cost-Benefit Analysis of Argentina's Youth Training Program," RES Working Papers 3174, Inter-American Development Bank, Research Department. [Downloadable!]
  9. Jeffrey A. Smith & Petra E. Todd, 2001. "Reconciling Conflicting Evidence on the Performance of Propensity-Score Matching Methods," American Economic Review, American Economic Association, vol. 91(2), pages 112-118, May. [Downloadable!] (restricted)
  10. Esther Duflo, 2001. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," American Economic Review, American Economic Association, vol. 91(4), pages 795-813, September. [Downloadable!] (restricted)
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  11. Card, David & Sullivan, Daniel G, 1988. "Measuring the Effect of Subsidized Training Programs on Movements in and out of Employment," Econometrica, Econometric Society, vol. 56(3), pages 497-530, May. [Downloadable!] (restricted)
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  12. LaLonde, Robert J, 1995. "The Promise of Public Sector-Sponsored Training Programs," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 149-68, Spring. [Downloadable!] (restricted)
  13. Barrera-Osorio, Felipe & Bertrand, Marianne & L. Linden, Leigh & Perez-Calle, Francisco, 2008. "Conditional cash transfers in education : design features, peer and sibling effects evidence from a randomized experiment in Colombia," Policy Research Working Paper Series 4580, The World Bank. [Downloadable!]
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  14. Joshua Angrist & Eric Bettinger & Michael Kremer, 2006. "Long-Term Educational Consequences of Secondary School Vouchers: Evidence from Administrative Records in Colombia," American Economic Review, American Economic Association, vol. 96(3), pages 847-862, June. [Downloadable!]
  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. [Downloadable!] (restricted)
  16. 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. [Downloadable!] (restricted)
  17. Angel Calderon Madrid, 2006. "Revisiting the Employability Effects of Training Programs for the Unemployed in Developing Countries," RES Working Papers 3224, Inter-American Development Bank, Research Department. [Downloadable!]
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