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Who benefits from Dual Training Systems? Evidence from the Philippines

Author

Listed:
  • Takiko Igarashi

    (Asian Development Bank Institute)

  • Pablo Acosta

    (World Bank
    IZA - Institute of Labor Economics)

Abstract

Rising youth unemployment rates have been increasingly recognized as a serious challenge in developing and advanced economies, suggesting a potential skills gap between the demand and supply of recent graduates. Effective dual education programs which utilize a combination of classroom instruction and practical skill training are usually presented as an approach to develop a skilled workforce and meet employers’ demands. This paper analyzes data from a recent survey tracking graduates from the Philippines’ Dual Training System (DTS), as well as from regular programs provided by technical vocational training institutes. The evidence suggests that the DTS has a signi!cantly higher rate of returns on labor market earnings than 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 DTS is also likely to increase in correlation with the intensity of the on-the-job component.

Suggested Citation

  • Takiko Igarashi & Pablo Acosta, 2022. "Who benefits from Dual Training Systems? Evidence from the Philippines," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 59(1), pages 26-45, June.
    • Handle: RePEc:phs:prejrn:v:59:y:2022:i:1:p:26-45
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    File URL: https://econ.upd.edu.ph/pre/index.php/pre/article/view/1022/931
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    References listed on IDEAS

    as
    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

    Philippines; skills; training systems; vocational education;
    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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