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Learning and earning: Evidence from a randomized evaluation in India

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  • Maitra, Pushkar
  • Mani, Subha

Abstract

Our paper presents the economic returns from participating in a subsidized vocational education program for women residing in low-income households in India. We combine pre-intervention data with two rounds of post-intervention data in an experimental framework to quantify the 6- and 18-month treatment effects of the program. The 6-month treatment effects indicate that women who were offered the vocational education program are 6% points more likely to be employed, 4% points more likely to be self-employed, work 2.5 additional hours per week, and earn 150% more per month than women in the control group. Using a second round of follow-up data collected 18 months after the intervention, we find that the 6-month treatment effects are all sustained over the medium run. Finally, cost-benefit analysis indicates that the program costs can be recovered with less than four years of employment. Overall our findings suggest that vocational education may serve to be a promising avenue through which young women can contribute to their household welfare.

Suggested Citation

  • Maitra, Pushkar & Mani, Subha, 2017. "Learning and earning: Evidence from a randomized evaluation in India," Labour Economics, Elsevier, vol. 45(C), pages 116-130.
  • Handle: RePEc:eee:labeco:v:45:y:2017:i:c:p:116-130
    DOI: 10.1016/j.labeco.2016.11.007
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    More about this item

    Keywords

    Vocational education; India; Economic returns; Field experiment; Panel data;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J19 - Labor and Demographic Economics - - Demographic Economics - - - Other
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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