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Experimental Evidence on the Long-Term Impacts of a Youth Training Program

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Listed:
  • Ibarrarán, Pablo

    (Inter-American Development Bank)

  • Kluve, Jochen

    (KfW Development Bank)

  • Ripani, Laura

    (Inter-American Development Bank)

  • Rosas Shady, David

    (Inter-American Development Bank)

Abstract

This paper presents the results of a randomized controlled trial on the long-term impacts of a youth training program. The empirical analysis estimates labor market impacts six years after the training – including long-term labor market trajectories of young people – and, to the best of our knowledge, is the first experimental long-term evaluation of a youth training program outside the US. We are able to track a representative sample of more than 3,200 youths at the six-year follow-up. Our empirical findings document significant impacts on the formality of employment, particularly for men, and impacts for both men and women in Santo Domingo, the capital of the Dominican Republic. The long-term analysis shows that these impacts are sustained and growing over time. There are no impacts on average employment, which is consistent with the low unemployment in countries with high informality and no unemployment insurance. Looking at the local labor market context, the analysis suggests that skills training programs work particularly well in more dynamic local contexts, where there is actual demand for the skills provided.

Suggested Citation

  • Ibarrarán, Pablo & Kluve, Jochen & Ripani, Laura & Rosas Shady, David, 2015. "Experimental Evidence on the Long-Term Impacts of a Youth Training Program," IZA Discussion Papers 9136, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9136
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    Cited by:

    1. Evan Borkum & Kristen Velyvis & Arif Mamun & Malik Khan Mubeen & Anca Dumitrescu & Ananya Khan, "undated". "Evaluation of MCC's Investments in Community Skills Development Centers in Namibia: Final Report," Mathematica Policy Research Reports 45805b53759348d48f2d0d569, Mathematica Policy Research.
    2. Achyuta Adhvaryu & Namrata Kala & Anant Nyshadham, 2018. "The Skills to Pay the Bills: Returns to On-the-job Soft Skills Training," NBER Working Papers 24313, National Bureau of Economic Research, Inc.
    3. Caio Piza & André Portela Souza & Patrick M Emerson & Vivian Amorim, 2024. "The Short- and Longer-Term Effects of a Child Labor Ban," The World Bank Economic Review, World Bank, vol. 38(2), pages 351-370.
    4. Calero, Carla & Gonzalez Diez, Veronica & Soares, Yuri S.D. & Kluve, Jochen & Corseuil, Carlos Henrique, 2017. "Can arts-based interventions enhance labor market outcomes among youth? Evidence from a randomized trial in Rio de Janeiro," Labour Economics, Elsevier, vol. 45(C), pages 131-142.
    5. David McKenzie, 2017. "How Effective Are Active Labor Market Policies in Developing Countries? A Critical Review of Recent Evidence," The World Bank Research Observer, World Bank, vol. 32(2), pages 127-154.
    6. 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.
    7. Verónica Escudero & Jochen Kluve & Elva López Mourelo & Clemente Pignatti, 2019. "Active Labour Market Programmes in Latin America and the Caribbean: Evidence from a Meta-Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 55(12), pages 2644-2661, December.
    8. Carla Calero & Sandra V. Rozo, 2016. "The effects of youth training on risk behavior: the role of non-cognitive skills," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-27, December.
    9. Camargo Juliana & Lima Lycia & Riva Flavio & Souza André Portela, 2021. "Technical Education, Non-cognitive Skills and Labor Market Outcomes: Experimental Evidence from Brazil," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-34, January.
    10. repec:idb:brikps:7203 is not listed on IDEAS
    11. 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.
    12. Adriana Kugler & Maurice Kugler & Juan E. Saavedra & Luis Omar Herrera-Prada, 2022. "Long-Term Educational Consequences of Vocational Training in Colombia: Impacts on Young Trainees and Their Relatives," Journal of Human Resources, University of Wisconsin Press, vol. 57(1), pages 178-216.
    13. Wendy Cunningham & Pablo Acosta & Noël Muller, 2016. "Minds and Behaviors at Work," World Bank Publications - Books, The World Bank Group, number 24659.
    14. Jorge Rodríguez & Fernando Saltiel & Sergio Urzúa, 2022. "Dynamic treatment effects of job training," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(2), pages 242-269, March.
    15. Fox,Louise & Kaul,Upaasna, 2018. "The evidence is in : how should youth employment programs in low-income countries be designed ?," Policy Research Working Paper Series 8500, The World Bank.
    16. Kluve, Jochen., 2016. "A review of the effectiveness of active labour market programmes with a focus on Latin America and the Caribbean," ILO Working Papers 994901193402676, International Labour Organization.
    17. Adriana Kugler & Maurice Kugler & Juan Saavedra & Luis Omar Herrera Prada, 2015. "Long-Term Educational Consequences of Vocational Training in Colombia: Impacts on Young Trainees and Their Relatives," NBER Working Papers 21607, National Bureau of Economic Research, Inc.
    18. 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.
    19. 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.
    20. Orbeta, Aniceto Jr. C. & Paqueo, Vicente B., 2017. "Countering the Discriminatory Impact of Minimum Wages Against Disadvantaged Workers: Literature Review and Experimental Design Development," Discussion Papers DP 2017-55, Philippine Institute for Development Studies.
    21. Verónica Alaimo & Mariano Bosch & David S. Kaplan & Carmen Pagés & Laura Ripani, 2015. "Jobs for Growth," IDB Publications (Books), Inter-American Development Bank, number 90977, February.
    22. Rafael Novella & Laura Ripani, 2016. "Are you (not) expecting? The unforeseen benefits of job training on teenage pregnancy," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-18, December.
    23. Quintana, Rodrigo & Cravo, Tulio, 2019. "Demand-Driven Training and Job Turnover: The Effects of Brazil’s Pronatec-MDIC at Firm and Worker Level," IDB Publications (Working Papers) 9688, Inter-American Development Bank.

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    More about this item

    Keywords

    youth training; Dominican Republic; randomized controlled trial; impact evaluation; long-term; labor market outcomes;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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