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Vocational Training Programs and Youth Labor Market Outcomes: Evidence from Nepal

Author

Listed:
  • Shubha Chakravarty

    () (The World Bank)

  • Mattias Lundberg

    () (The World Bank)

  • Plamen Nikolov

    () (State University of New York (at Binghamton))

  • Juliane Zenker

    () (University of Göttingen)

Abstract

Lack of skills is arguably one of the most important determinants for high levels of unemployment and poverty. Targeting youth unemployment and also important because of its strong influence on other important social outcomes. Using a “fuzzy” regression discontinuity design, we examine the employment effects of a vocational training program in Nepal launched in 2009 over a three-year period. We find program participation generated an increase in non-farm employment of 28 percentage points for an overall gain of 95 percent, three years into the program. The program also generated an average monthly earnings gain of 2,167NRs (˜ 29 USD) or 171 percent. Applying heterogeneous local average treatment effect (HLATE) estimators, we find striking differences in the impacts by gender: program impacts are almost double the size for women than for men.

Suggested Citation

  • Shubha Chakravarty & Mattias Lundberg & Plamen Nikolov & Juliane Zenker, 2017. "Vocational Training Programs and Youth Labor Market Outcomes: Evidence from Nepal," Working Papers 2017-056, Human Capital and Economic Opportunity Working Group.
  • Handle: RePEc:hka:wpaper:2017-056
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    Cited by:

    1. Mohamed Ali Marouani & Michelle Marshalian, 2019. "Winners and Losers in Industrial Policy 2.0: An evaluation of the impacts of the Tunisian Industrial Upgrading Program," Working Papers 1302, Economic Research Forum, revised 2019.
    2. Stöterau, Jonathan, 2019. "Job training programs for youth in low-income countries," PEGNet Policy Briefs 15/2019, PEGNet - Poverty Reduction, Equity and Growth Network, Kiel Institute for the World Economy (IfW).

    More about this item

    Keywords

    training; employment; labor; economic development; Nepal; Regression Discontinuity; gender;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • 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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