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Evaluating the impact of job training programmes in Latin America: evidence from IDB funded operations

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  • Pablo Ibarrarán
  • David Rosas Shady

Abstract

Among active labour market programmes, job training is popular in Latin America as an attempt to help the labour market insertion of disadvantaged youth, and also as a way of providing skills to low-income groups to enable them to deal with the challenges of globalisation. This paper summarises the findings from the first rigorous set of evaluations of job training programmes in Latin America that were made in the context of a project undertaken by the Office of Evaluation and Oversight at the Inter-American Development Bank. This research was complemented by two independent impact evaluations of similar training programmes in Chile and Colombia. The paper reports the results of two evaluations with an experimental design (the Dominican Republic and Colombia), one with a natural experiment (Panama), and four non-experimental evaluations (Argentina, Chile, Peru, and Mexico). Overall, in contrast to the evidence for developed countries, the results suggest that employment effects range from modest to meaningful - increasing the employment rate by about 0 to 5 percentage points - although higher and significant for some groups, such as women in Colombia and Panama - with an impact of 6 to 12 percentage points in the employment rate. In most cases there are larger and significant impacts on job quality, measured by getting a formal job, having a contract, and/or receiving health insurance as a benefit.

Suggested Citation

  • Pablo Ibarrarán & David Rosas Shady, 2009. "Evaluating the impact of job training programmes in Latin America: evidence from IDB funded operations," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 1(2), pages 195-216, June.
  • Handle: RePEc:taf:jdevef:v:1:y:2009:i:2:p:195-216
    DOI: 10.1080/19439340902918094
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    Cited by:

    1. Escudero, Verónica & Kluve, Jochen & López Mourelo, Elva & Pignatti, Clemente, 2017. "Active labour market programmes in Latin America and the Caribbean: Evicence from a meta analysis," Ruhr Economic Papers 715, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. López Mourelo, Elva & Escudero, Verónica, 2017. "Effectiveness of Active Labor Market Tools in Conditional Cash Transfers Programs: Evidence for Argentina," World Development, Elsevier, vol. 94(C), pages 422-447.
    3. Evelyn Vezza, 2014. "Escaneo de Políticas y Meta-Análisis: Juventud y Políticas de Empleo en América Latina (Policy scan and meta-analysis: Youth and Employment policies in Latin America)," CEDLAS, Working Papers 0156, CEDLAS, Universidad Nacional de La Plata.
    4. repec:eee:labeco:v:45:y:2017:i:c:p:116-130 is not listed on IDEAS
    5. Björn Nilsson, 2017. "The School-to-work transition in developing countries," Working Papers DT/2017/07, DIAL (Développement, Institutions et Mondialisation).
    6. Arif Mamun & Evan Borkum & Kristen Velyvis & Luke Heinkel & John Middleton, 2014. "The Millennium Challenge Corporation's Vocational Training Activity in Namibia: Evaluation Design Report," Mathematica Policy Research Reports 80d2989ca5c64313afe4bc4fd, Mathematica Policy Research.
    7. Maitra, Pushkar & Mani, Subha, 2017. "Learning and earning: Evidence from a randomized evaluation in India," Labour Economics, Elsevier, vol. 45(C), pages 116-130.
    8. World Bank, 2016. "Bangladesh Social Protection and Labor Review," World Bank Other Operational Studies 25265, The World Bank.
    9. Evan Borkum & Arif Mamun & Linus Marco & Malik Khan Mubeen, "undated". "Evaluation of the Vocational Training Grant Fund in Namibia: Baseline Report," Mathematica Policy Research Reports e62360de0bf845e3b67ee22ff, Mathematica Policy Research.
    10. Cunningham, Wendy & Villasenor, Paula, 2014. "Employer voices, employer demands, and implications for public skills development policy," Policy Research Working Paper Series 6853, The World Bank.
    11. Marina Bassi & Matías Busso & Sergio Urzúa & Jaime Vargas, 2012. "Disconnected: Skills, Education, and Employment in Latin America," IDB Publications (Books), Inter-American Development Bank, number 79504, February.
    12. Pablo Ibarraran & Laura Ripani & Bibiana Taboada & Juan Villa & Brigida Garcia, 2014. "Life skills, employability and training for disadvantaged youth: Evidence from a randomized evaluation design," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-24, December.
    13. Rita Almeida & Jere Behrman & David Robalino, 2012. "The Right Skills for the Job? Rethinking Training Policies for Workers," World Bank Publications, The World Bank, number 13075.
    14. repec:idb:idbbks:427 is not listed on IDEAS
    15. Umidjon Abdullaev & Marcello Estevao, 2013. "Growth and Employment in the Dominican Republic; Options for a Job-Rich Growth," IMF Working Papers 13/40, International Monetary Fund.
    16. Kluve, Jochen, 2013. "Aktive Arbeitsmarktpolitik: Maßnahmen, Zielsetzungen, Wirkungen," Working Papers 07/2013, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    17. World Bank, 2015. "Labor Market Impacts and Effectiveness of Skills Development Programs in India," World Bank Other Operational Studies 22391, The World Bank.
    18. Chung Choe & Alfonso Flores-Lagunes & Sang-Jun Lee, 2015. "Do dropouts with longer training exposure benefit from training programs? Korean evidence employing methods for continuous treatments," Empirical Economics, Springer, vol. 48(2), pages 849-881, March.
    19. World Bank, 2015. "Labor Market Impacts and Effectiveness of Skills Development Programs in 5 States in India," World Bank Other Operational Studies 22815, The World Bank.
    20. Evan Borkum & Arif Mamun & Malik Khan Mubeen, "undated". "Evaluation of the Vocational Training Grant Fund in Namibia: Final Report," Mathematica Policy Research Reports c23d691613754f048ef486f03, Mathematica Policy Research.
    21. Eichhorst, Werner & Rodríguez-Planas, Núria & Schmidl, Ricarda & Zimmermann, Klaus F., 2012. "A Roadmap to Vocational Education and Training Systems Around the World," IZA Discussion Papers 7110, Institute for the Study of Labor (IZA).
    22. Jochen Kluve, 2014. "Youth labor market interventions," IZA World of Labor, Institute for the Study of Labor (IZA), pages 106-106, December.
    23. World Bank Group, 2015. "Toward Solutions for Youth Employment," World Bank Other Operational Studies 23261, The World Bank.
    24. 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.
    25. Peter J. Glick & Crystal Huang & Nelly Mejia, 2015. "The Private Sector and Youth Skills and Employment Programs in Low and Middle-Income Countries," World Bank Other Operational Studies 23260, The World Bank.

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