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

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  • Chong, Alberto

    (University of Ottawa)

  • Galdo, Jose C.

    (Carleton University)

Abstract

We estimate the effect of training quality on earnings using a Peruvian program, which targets disadvantaged youths. The identification of causal effects is possible because of two attractive features in the data. First, selection of training courses is based on public bidding processes that assign standardized scores to multiple proxies for quality. Second, the evaluation framework allows for the identification and comparison of individuals in 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. External validity was assessed by using five different calls over a nine-year period.

Suggested Citation

  • Chong, Alberto & Galdo, Jose C., 2006. "Does the Quality of Training Programs Matter? Evidence from Bidding Processes Data," IZA Discussion Papers 2202, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2202
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    Cited by:

    1. Cho, Yoon Y. & Kalomba, Davie & Mobarak, Ahmed Mushfiq & Orozco, Victor, 2013. "Gender Differences in the Effects of Vocational Training: Constraints on Women and Drop-Out Behavior," IZA Discussion Papers 7408, Institute of Labor Economics (IZA).
    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. 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).
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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).
    10. Galdo, José & Saavedra-Chanduví, Jaime & Chong, Alberto E., 2007. "Informality and Productivity in the Labor Market: Peru 1986 - 2001," IDB Publications (Working Papers) 1958, Inter-American Development Bank.
    11. 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.
    12. 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).
    13. 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.

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    More about this item

    Keywords

    matching methods; bidding; earnings; quality; training;
    All these keywords.

    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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