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The Impact of Mexico's Retraining Program on Employment and Wages


  • Revenga, Ana
  • Riboud, Michelle
  • Tan, Hong


This article analyzes the impact and effectiveness of the Mexican labor retraining program for unemployed and displaced workers--Programa de Becas de Capacitacion para Trabajadores (PROBECAT). The strategy followed is to compare the post-training labor market experiences of trainees with those of a comparison group--a matched sample of unemployed individuals who were eligible for, but did not participate in PROBECAT. The results of this exercise suggest that participation in PROBECAT reduced the mean duration of unemployment for both men and women trainees and increased the monthly earnings of men, but not of women. The results also indicate that the post-training earnings effect varied systematically by level of education attained, with the largest earnings increases (of about 28 to 37 percent) found for men with six to twelve years of education. Copyright 1994 by Oxford University Press.

Suggested Citation

  • Revenga, Ana & Riboud, Michelle & Tan, Hong, 1994. "The Impact of Mexico's Retraining Program on Employment and Wages," World Bank Economic Review, World Bank Group, vol. 8(2), pages 247-277, May.
  • Handle: RePEc:oup:wbecrv:v:8:y:1994:i:2:p:247-77

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    References listed on IDEAS

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    Cited by:

    1. Marcelo Delajara & Samuel Freije & Isidro Soloaga, 2006. "An Evaluation of Training for the Unemployed in Mexico," IDB Publications (Working Papers) 2997, Inter-American Development Bank.
    2. Godtland, Erin M & Sadoulet, Elisabeth & De Janvry, Alain & Murgai, Rinku & Ortiz, Oscar, 2004. "The Impact of Farmer Field Schools on Knowledge and Productivity: A Study of Potato Farmers in the Peruvian Andes," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 63-92, October.
    3. Wodon, Quentin & Minowa, Mari, 2001. "Training for the Urban Unemployed: A Reevaluation of Mexico's Training Program, Probecat," MPRA Paper 12310, University Library of Munich, Germany.
    4. Angel Calderon Madrid, 2000. "Job Stability and Labor Mobility in Urban Mexico: A Study Based on Duration Models and Transition Analysis," Research Department Publications 3117, Inter-American Development Bank, Research Department.
    5. David S. Kaplan & Raymond Robertson & Gabriel Martínez González, 2005. "What Happens to Wages after Displacement?," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Spring 20), pages 197-242, January.
    6. Quentin Wodon & Rodrigo Castro & Kihoon Lee, 2001. "Poverty in Latin America: Trends (1986-1998) and Determinants," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 38(114), pages 127-153.
    7. Calderón-Madrid, Angel & Trejo, Belem, 2002. "The Impact of the Mexican Training Program for Unemployed Workers on Re-employment Dynamics and on Earnings," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A2-1, International Conferences on Panel Data.
    8. Kaplan, David S. & Gonzalez, Gabriel Martinez & Robertson, Raymond, 2007. "Mexican employment dynamics : evidence from matched firm-worker data," Policy Research Working Paper Series 4433, The World Bank.
    9. Buvinic, Mayra & Furst-Nichols, Rebecca, 2014. "Promoting women's economic empowerment : what works ?," Policy Research Working Paper Series 7087, The World Bank.
    10. Angel Calderón Madrid, 2006. "Revisiting the Employability Effects of Training Programs for the Unemployed in Developing Countries," IDB Publications (Working Papers) 3254, Inter-American Development Bank.
    11. Dar, Amit & Gill, Indermit S, 1998. "Evaluating Retraining Programs in OECD Countries: Lessons Learned," World Bank Research Observer, World Bank Group, vol. 13(1), pages 79-101, February.
    12. Hicks, Norman & Wodon, Quentin, 2001. "Social protection for the poor in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    13. Kluve, Jochen., 2016. "A review of the effectiveness of active labour market programmes with a focus on Latin America and the Caribbean," ILO Working Papers 994901193402676, International Labour Organization.

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