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The Impact of Public and Private Job Training in Colombia

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  • Medina, Carlos
  • Nuñez, Jairo

Abstract

The authors present various matching estimators of the impact on earnings for individuals who attended public and private job training programs in Colombia. The authors estimate propensity scores by controlling for the wide variety of personal and socioeconomic background variables of those individuals. The effect of training, measured by the mean impact of the treatment on the treated, shows that: (i) for youths, no institution has a significant impact in the short or long run except private institutions for males; the scope of the data, however, limits the reliability of the result; (ii) for adult males, neither SENA nor the other public institutions have a significant impact in the short or long run; (iii) for SENAtrained adult females there are positive but not significant impacts in the short run and greater and close to significant effects in the long run. All other public institutions have a higher impact that is significant in the long-run; (iv) for adults trained at private institutions there are large and significant effects in both the short and long run, but for adult males in the short run the effects are smaller and only barely significant. In addition, neither short nor long courses provided by SENA seem to have a significant impact on earnings. In general, females benefit more from both short and long courses than males. Finally, a cost-benefit analysis shows that under the assumption of direct unitary costs equal to SENA, private institutions are more profitable than public institutions, which are in turn more profitable than SENA.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6931.

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Date of creation: Feb 2005
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Handle: RePEc:pra:mprapa:6931

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Related research

Keywords: Program evaluation; selection bias; job training programs;

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References

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  1. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, Econometric Society, vol. 51(2), pages 507-12, March.
  2. Jimenez, Emmanuel & Kugler, Bernardo & Horn, Robin, 1989. "National In-Service Training Systems in Latin America: An Economic Evaluation of Colombia's SENA," Economic Development and Cultural Change, University of Chicago Press, vol. 37(3), pages 595-610, April.
  3. Heckman, James J & Lochner, Lance & Taber, Christopher, 1998. "General-Equilibrium Treatment Effects: A Study of Tuition Policy," American Economic Review, American Economic Association, vol. 88(2), pages 381-86, May.
  4. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  5. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, Econometric Society, vol. 66(5), pages 1017-1098, September.
  6. Garen, John, 1984. "The Returns to Schooling: A Selectivity Bias Approach with a Continuous Choice Variable," Econometrica, Econometric Society, Econometric Society, vol. 52(5), pages 1199-1218, September.
  7. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
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Cited by:
  1. Carlos Medina & Jairo Núñez & Jorge Andrés Tamayo, 2013. "The Unemployment Subsidy Program in Colombia: An Assessment," BORRADORES DE ECONOMIA 010393, BANCO DE LA REPÚBLICA.
  2. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection Discussion Papers 29142, The World Bank.
  3. Suzanne Duryea & Carmen Pagés-Serra, 2002. "Human Capital Policies: What they Can and Cannot Do for Productivity and Poverty Reduction in Latin America," Research Department Publications 4297, Inter-American Development Bank, Research Department.
  4. Hansen, Ellen & Avila, Zulum, 2012. "Preliminary assessment of training and retraining programmes implemented in response to the Great Recession :," ILO Working Papers 468419, International Labour Organization.
  5. Suzanne Duryea & Carmen Pagés-Serra, 2002. "Políticas de capital humano: qué pueden conseguir y qué no en cuanto a la productividad y la reducción de la pobreza en América Latina," Research Department Publications 4298, Inter-American Development Bank, Research Department.
  6. Juan ESteban Saavedra & Carlos Medina, 2012. "Formación para el Trabajo en Colombia," Borradores de Economia 740, Banco de la Republica de Colombia.

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