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The Impact of Training Policies in Latin America and the Caribbean: The Case of Programa Joven

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  • Aedo, Cristían
  • Nuñez, Sergio

Abstract

This paper evaluates Programa Joven, a training program conducted by Argentina's Ministerio del Trabajo. The paper adapts and applies a non-experimental evaluation methodology to answer the following questions: (1) Did Programa Joven increase the labor income of the trainees? (2) Did Programa Joven increase the probability of employment? (3) What was the rate of return to dollars spent on Programa Joven? The basic methodology used was the Matching Estimators approach. The application of this methodology requires two steps: first, the estimation of a model of program participation (propensity scores), and second, conditional upon the estimated propensity scores, the use of matching estimators to calculate the impact of the program. Three different information sources permitted the analysis of an additional question: how sensitive are program impact estimates to different propensity score specifications? The paper hypothesizes that impact estimates are in fact sensitive to different propensity score specifications. Additionally, the paper reports and compares the propensity scores estimated from each of these data sources, and then estimates the program impact on earnings and employment based upon these propensity scores. Finally, the authors carry out a cost-benefit analysis of Programa Joven based upon cost information and program impact estimates (benefits).

Suggested Citation

  • Aedo, Cristían & Nuñez, Sergio, 2004. "The Impact of Training Policies in Latin America and the Caribbean: The Case of Programa Joven," IDB Publications (Working Papers) 3287, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:3287
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    References listed on IDEAS

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    1. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-620, September.
    2. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    3. James J. Heckman & Jeffrey Smith & Nancy Clements, 1997. "Making The Most Out Of Programme Evaluations and Social Experiments: Accounting For Heterogeneity in Programme Impacts," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 487-535.
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    5. Härdle,Wolfgang, 1992. "Applied Nonparametric Regression," Cambridge Books, Cambridge University Press, number 9780521429504.
    6. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
    7. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
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    Cited by:

    1. Ayesha Khan & Mupuwaliywa Mupuwaliywa, 2015. "Providing Out-of-School Girls with Skills," World Bank Publications - Reports 23868, The World Bank Group.
    2. Shubha Chakravarty & Sarah Haddock & Ioana Botea, 2016. "Providing Out-of-School Adolescent Girls with Skills," World Bank Publications - Reports 24571, The World Bank Group.

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