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Who benefits from dual training systems ? evidence from the Philippines

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  • Igarashi,Takiko
  • Acosta,Pablo Ariel

Abstract

Rising youth unemployment rates have been increasingly recognized as a serious challenge in developing and advanced economies, as the trend indicates a potential skills gap between the demands of the workforce and recent graduates. Effective dual education programs utilizing a combination of classroom instruction and practical skill training present an approach to developing a skilled workforce and meeting workforce demands. To evaluate the impact of the Philippine Dual Training System on labor market outcomes, this paper analyzes data from a recent survey tracking graduates from the Dual Training System and regular vocational training programs provided by technical vocational training institutes. The data analysis reveals that the Dual Training System has a significantly higher rate of return on labor market earnings compared with regular, classroom-only vocational training programs, particularly among high school graduates who did not perform well academically during basic education. The magnitude of the impact of the Dual Training System is also likely to increase in correlation with the intensity of the on-the-job component.

Suggested Citation

  • Igarashi,Takiko & Acosta,Pablo Ariel, 2018. "Who benefits from dual training systems ? evidence from the Philippines," Policy Research Working Paper Series 8429, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8429
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    References listed on IDEAS

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    1. Lee, Kye Woo & Kim, Dae Hong & Lee, Ha Kyeong, 2016. "Is the Meister Vocational High School more cost-effective?," International Journal of Educational Development, Elsevier, vol. 51(C), pages 84-95.
    2. Bartel, Ann P, 1995. "Training, Wage Growth, and Job Performance: Evidence from a Company Database," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 401-425, July.
    3. Orbeta, Aniceto Jr. C. & Esguerra, Emmanuel F., 2016. "The National System of Technical Vocational Education and Training in the Philippines: Review and Reform Ideas," Discussion Papers DP 2016-07, Philippine Institute for Development Studies.
    4. Schaffner, Julie Anderson, 2001. "Job Stability in Developing and Developed Countries: Evidence from Colombia and the United States," Economic Development and Cultural Change, University of Chicago Press, vol. 49(3), pages 511-535, April.
    5. Julie Anderson Schaffner, 2001. "Turnover and Job Training in Developing and Developed Countries: Evidence from Colombia and the United States," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-115, Boston University - Department of Economics.
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    Cited by:

    1. Parteca Mihaela, 2019. "Investigation into Millennials’ and Z generation’s perception over dual education systems in Romania in a tourism oriented institution," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 1033-1044, May.

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    More about this item

    Keywords

    Vocational&Technical Education; Vocational Education&Technical Training; Labor Markets; Rural Labor Markets; Educational Sciences;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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