IDEAS home Printed from https://ideas.repec.org/a/phs/prejrn/v59y2022i1p26-45.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://econ.upd.edu.ph/pre/index.php/pre/article/view/1022/931
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alison L. Booth & Marco Francesconi & Gylfi Zoega, 2003. "Unions, Work-Related Training, and Wages: Evidence for British Men," ILR Review, Cornell University, ILR School, vol. 57(1), pages 68-91, October.
    2. 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.
    3. Futoshi Yamauchi & Nipon Poapongsakorn & Nipa Srianant, 2009. "Technical Change and the Returns and Investments in Firm-level Training: Evidence from Thailand," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1633-1650.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Caliendo, Marco & Cobb-Clark, Deborah A. & Obst, Cosima & Uhlendorff, Arne, 2023. "Risk preferences and training investments," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 668-686.
    2. Jozef Konings & Stijn Vanormelingen, 2015. "The Impact of Training on Productivity and Wages: Firm-Level Evidence," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 485-497, May.
    3. Muhammad Masood Mir & Hafiz Muhammad Sharif & Nousheen Abbas Naqvi, 2017. "Evaluating HR Practices on Organizational Productivity with the Mediation Effect of Employee Satisfaction Evidences from Higher Education Sectors of Karachi Pakistan," KASBIT Business Journals (KBJ), Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 10(Special I), pages 50-76, May.
    4. C. Jeffrey Waddoups, 2012. "Employer-Sponsored Training and Longer-Tenured Workers: Evidence from A ustralia," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(4), pages 966-986, October.
    5. Jean-Marie Baland & Roberta Ziparo, 2017. "Intra-household bargaining in poor countries," WIDER Working Paper Series wp-2017-108, World Institute for Development Economic Research (UNU-WIDER).
    6. Kuckulenz, Anja, 2006. "Wage and Productivity Effect of Continuing Training in Germany: A Sectoral Analysis," ZEW Discussion Papers 06-025, ZEW - Leibniz Centre for European Economic Research.
    7. Addison, John T. & Belfield, Clive R., 2007. "Unions, training and firm performance," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(4), pages 361-381.
    8. Addison, John T. & Belfield, Clive R., 2007. "Unions, training and firm performance," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(4), pages 361-381.
    9. Henrik Hansen & S Kanayade & John Rand & Neda Trifkovic, 2021. "Workplace training in Myanmar: Determinants and wage returns," DERG working paper series 21-10, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    10. William Collier & Francis Green & Young-Bae Kim & John Peirson, 2011. "Education, Training and Economic Performance: Evidence from Establishment Survival Data," Journal of Labor Research, Springer, vol. 32(4), pages 336-361, December.
    11. Sauermann, Jan & Stenberg, Anders, 2020. "Assessing Selection Bias in Non-Experimental Estimates of the Returns to Workplace Training," IZA Discussion Papers 13789, Institute of Labor Economics (IZA).
    12. François Gerard & Gustavo Gonzaga, 2011. "Unemployment Insurance in Developing Countries: The Case of Brazil," Textos para discussão 593, Department of Economics PUC-Rio (Brazil).
    13. Jean-Marie Baland & Roberta Ziparo, 2017. "Intra-household bargaining in poor countries," WIDER Working Paper Series 108, World Institute for Development Economic Research (UNU-WIDER).
    14. Ritter-Hayashi, D. & Knoben, Joris & Vermeulen, P.A.M., 2018. "Success Belongs to the Flexible Firm : How Labor Flexibility Can Retain Firm Innovativeness in Times of Downsizing," Other publications TiSEM 749e1bae-6946-40cb-a5fc-e, Tilburg University, School of Economics and Management.
    15. Julie Anderson Schaffner, 2006. "Book Review," Economic Development and Cultural Change, University of Chicago Press, vol. 55(1), pages 242-245, October.
    16. repec:lic:licosd:24409 is not listed on IDEAS
    17. Gareth D. Leeves, 2014. "Increasing returns to education and the impact on social capital," Education Economics, Taylor & Francis Journals, vol. 22(5), pages 449-470, October.
    18. Michael Coelli & Domenico Tabasso, 2019. "Where are the returns to lifelong learning?," Empirical Economics, Springer, vol. 57(1), pages 205-237, July.
    19. Isabel Cairó & Tomaz Cajner, 2018. "Human Capital and Unemployment Dynamics: Why More Educated Workers Enjoy Greater Employment Stability," Economic Journal, Royal Economic Society, vol. 128(609), pages 652-682, March.
    20. Hans Dietrich & Harald Pfeifer & Felix Wenzelmann, 2016. "The more they spend, the more I earn? Firms' training investments and post-training wages of apprentices," Economics of Education Working Paper Series 0116, University of Zurich, Department of Business Administration (IBW).
    21. Pfeifer, Christian & Janssen, Simon & Yang, Philip & Backes-Gellner, Uschi, 2010. "Training Participation of an Aging Workforce in an Internal Labor Market," Hannover Economic Papers (HEP) dp-447, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phs:prejrn:v:59:y:2022:i:1:p:26-45. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: HR Rabe (email available below). General contact details of provider: https://edirc.repec.org/data/seupdph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.