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Does the Quality of Training Programs Matter? Evidence from Bidding Processes Data

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  • Alberto Chong

  • José Galdo

Abstract

This paper estimates the effect of training quality on labor-market earnings using a Peruvian non-experimental training program, PROJOVEN, which targets disadvantaged youths aged 16 to 24 years. The identification of causal effects is possible because of two attractive features in the data. First, the selection of training courses is based on public bidding processes that assign standardized scores to multiple proxies for quality. Second, the program`s evaluation framework allows for the identification and comparison of individuals in the treatment and comparison groups six, 12, and 18 months after the program. Using difference-in-differences kernel matching methods, we find that individuals attending high-quality training courses have higher average and marginal treatment impacts. The external validity of our estimates was assessed by using five different calls of this program over a nine-year period.

Suggested Citation

  • Alberto Chong & José Galdo, 2006. "Does the Quality of Training Programs Matter? Evidence from Bidding Processes Data," Research Department Publications 4451, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4451
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    Cited by:

    1. Alberto Chong & José Galdo & Jaime Saavedra-Chanduví, 2007. "Informalidad y Productividad en el Mercado Laboral: Perú 1986-2001 (Informality and Productivity in the Labor Market: Peru 1986 - 2001)," Research Department Publications 4527, Inter-American Development Bank, Research Department.
    2. Alberto Chong & Jose Galdo & Jaime Saavedra, 2008. "Informality and productivity in the labor market in Peru," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(4), pages 229-245.
    3. Alberto Chong & José Galdo & Jaime Saavedra-Chanduví, 2007. "Informality and Productivity in the Labor Market: Peru 1986 - 2001," Research Department Publications 4526, Inter-American Development Bank, Research Department.
    4. de Crombrugghe, D.P.I. & Espinoza, H. & Heijke, J.A.M., 2010. "Determinants of dropout behaviour in a job training programme for disadvantaged youth," ROA Research Memorandum 008, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    5. Janice Tripney & Jorge Hombrados & Mark Newman & Kimberly Hovish & Chris Brown & Katarzyna Steinka‐Fry & Eric Wilkey, 2013. "Technical and Vocational Education and Training (TVET) Interventions to Improve the Employability and Employment of Young People in Low‐ and Middle‐Income Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 9(1), pages 1-171.
    6. Cho, Yoonyoung. & Kalomba, Davie. & Mobarak, Ahmed Mushfiq. & Orozco, Víctor., 2015. "Differences in the effects of vocational training on men and women : constraints on women and drop-out behaviour," ILO Working Papers 994874103402676, International Labour Organization.
    7. Janice Tripney & Jorge Hombrados & Mark Newman & Kimberly Hovish & Chris Brown & Katarzyna Steinka‐Fry & Eric Wilkey, 2013. "Technical and Vocational Education and Training (TVET) Interventions to Improve the Employability and Employment of Young People in Low‐ and Middle‐Income Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 9(1), pages 1-171.
    8. Alberto Chong & Jose Galdo & Jaime Saavedra, 2008. "Informality and productivity in the labor market in Peru," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(4), pages 229-245.
    9. David Card & Pablo Ibarrarán & Ferdinando Regalia & David Rosas-Shady & Yuri Soares, 2011. "The Labor Market Impacts of Youth Training in the Dominican Republic," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 267-300.
    10. Attanasio, Orazio & Kugler, Adriana & Meghir, Costas, 2009. "Subsidizing Vocational Training for Disadvantaged Youth in Developing Countries: Evidence from a Randomized Trial," IZA Discussion Papers 4251, Institute of Labor Economics (IZA).
    11. de Crombrugghe, D.P.I. & Espinoza, H. & Heijke, J.A.M., 2010. "Job-training programmes with low completion rates: the case of Projoven-Peru," ROA Research Memorandum 004, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    12. Cho,Yoonyoung & Kalomba, Davie & Mobarak,Ahmed Mushfiq & Orozco Olvera,Victor Hugo & Cho,Yoonyoung & Kalomba, Davie & Mobarak,Ahmed Mushfiq & Orozco Olvera,Victor Hugo, 2013. "Gender differences in the effects of vocational training : constraints on women and drop-out behavior," Policy Research Working Paper Series 6545, The World Bank.
    13. Chakravarty, Shubha & Lundberg, Mattias & Nikolov, Plamen & Zenker, Juliane, 2019. "Vocational training programs and youth labor market outcomes: Evidence from Nepal," Journal of Development Economics, Elsevier, vol. 136(C), pages 71-110.

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    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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