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Long Term Impacts of Vouchers for Vocational Training: Experimental Evidence for Colombia

Author

Listed:
  • Attanasio, Orazio
  • Guarín, Arlen
  • Medina, Carlos
  • Meghir, Costas

Abstract

We use experimental data of a training program in 2005 in Colombia. We find that even up to ten years ahead, the JeA program had a positive and significant effect on the probability to work in the formal sector. Applicants in the treatment group also contributed more months to social security during the analyzed period, and to work for a large firm. Earnings of treated applicants were 11.8% higher in the whole sample, and they made larger contributions to social security. In addition, we also present non parametric bounds that for some percentiles of the sample of women, there are positive and nearly significant effects of the program. Thus, the effects of the program would have been capitalized both in increases in the likelihood of being formal, and increases in productivity. We also present evidence that the estimated program effects on the likelihood of working for the formal sector, the likelihood of working for a large firm, and the earnings in the formal sector, are not an artifact of analyzing multiple outcomes. We also find that for the whole sample of applicants, those in the treatment group have 0.315 more years of education, and have a probability of graduating from high school 10 percent higher than the control group. We find no significant effect on the probability of attending college or any school program, nor on fertility decisions, marital status or some dimensions of assortative mating. Among applicants matching to the census of the poorest population, we find that beneficiaries are more likely to participate in the labor market, to be employed, and to be enrolled in a private health insurance at the time of the survey. Finally, we find that the benefits of the JeA program are higher than it costs, leading to an internal rate of return of at least 22.1 percent. On the whole, the program was a cost-effective alternative, worth to consider to bridging the transit of youths from the informal to the formal sector in the future.

Suggested Citation

  • Attanasio, Orazio & Guarín, Arlen & Medina, Carlos & Meghir, Costas, 2015. "Long Term Impacts of Vouchers for Vocational Training: Experimental Evidence for Colombia," CEPR Discussion Papers 10733, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:10733
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Adriana Kugler & Maurice Kugler & Juan Saavedra & Luis Omar Herrera Prada, 2015. "Long-term Direct and Spillover Effects of Job Training: Experimental Evidence from Colombia," NBER Working Papers 21607, National Bureau of Economic Research, Inc.
    2. repec:eee:labeco:v:45:y:2017:i:c:p:131-142 is not listed on IDEAS
    3. María laura Alzúa & Guillermo Cruces & Carolina Lopez, 2016. "Long-Run Effects Of Youth Training Programs: Experimental Evidence From Argentina," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1839-1859, October.
    4. Paloma Acevedo & Guillermo Cruces & Paul Gertler & Sebastian Martinez, 2017. "Living Up to Expectations: How Job Training Made Women Better Off and Men Worse Off," NBER Working Papers 23264, National Bureau of Economic Research, Inc.
    5. Piza, Caio & Souza, André Portela Fernandes de, 2016. "Short and long-term effects of a child-labor ban," Textos para discussão 428, FGV/EESP - Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).
    6. Wendy Cunningham & Pablo Acosta & Noël Muller, 2016. "Minds and Behaviors at Work," World Bank Publications, The World Bank, number 24659, August.
    7. Mazzutti, Caio Cícero Toledo Piza da Costa, 2016. "Three essays on the causal impacts of child labour laws in Brazil," Economics PhD Theses 0616, Department of Economics, University of Sussex.

    More about this item

    Keywords

    informality; long term impacts; Training programs;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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