Learning and Earning: Evidence from a Randomized Evaluation in India
This paper examines the economic returns from participating in a subsidized vocational education program in stitching and tailoring offered to women residing in certain disadvantaged areas of New Delhi, India. The availability of pre and post-training data in an experimental framework allows us to measure the impact of participating in this program on a broad range of outcomes. In less than a year, the program has generated substantial improvement in labor market outcomes for these women. In particular, we find that women who were randomly offered the training program are almost five percentage points more likely to be employed, six percentage points more likely to look for a job, on an average work two additional hours, and earn almost twice as much in the post-training period compared to women who were not offered the training. There is a also a large increase in the ownership of sewing machine in the post-training period. The program impacts are much larger for women who completed the training program. Women assigned to the training program have also gained in the form of increased relative confidence. Further, the impact estimates vary with participants' intrinsic preferences for risk, competition, and confidence. Finally, a simple cost-benefit analysis suggests that the program is highly cost effective and that there are considerable gains from both continuing the program in the current location and replicating it in different locations.
|Date of creation:||Sep 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, Monash University, Victoria 3800, Australia|
Web page: http://www.buseco.monash.edu.au/eco/
More information through EDIRC
|Order Information:|| Web: http://www.buseco.monash.edu.au/eco/research/papers/ Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Muriel Niederle & Lise Vesterlund, 2005.
"Do Women Shy Away From Competition? Do Men Compete Too Much?,"
NBER Working Papers
11474, National Bureau of Economic Research, Inc.
- Muriel Niederle & Lise Vesterlund, 2007. "Do Women Shy Away From Competition? Do Men Compete Too Much?," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 1067-1101.
- Muriel Niederle & Lise Vesterlund, 2005. "Do Women Shy Away from Competition? Do Men Compete too Much?," Discussion Papers 04-030, Stanford Institute for Economic Policy Research.
- Glenn W. Harrison & John A. List, 2004.
Journal of Economic Literature,
American Economic Association, vol. 42(4), pages 1009-1055, December.
- David Card & Pablo Ibarraran & Ferdinando Regalia & David Rosas & Yuri Soares, 2007. "The Labor Market Impacts of Youth Training in the Dominican Republic: Evidence from a Randomized Evaluation," NBER Working Papers 12883, National Bureau of Economic Research, Inc.
- Dean Karlan & Martin Valdivia, 2007.
"Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions,"
107, Center for Global Development.
- Dean Karlan & Martin Valdivia, 2011. "Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 510-527, May.
- Dean Karlan & Martin Valdivia, 2006. "Teaching entrepreneurship: Impact of business training on microfinance clients and institutions," Natural Field Experiments 00282, The Field Experiments Website.
- Martin Valdivia & Dean Karlan, 2006. "Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions," Working Papers 941, Economic Growth Center, Yale University.
- Dasgupta, Utteeyo & Gangadharan, Lata & Maitra, Pushkar & Mani, Subha & Subramanian, Samyukta, 2011. "Selection into skill accumulation: evidence using observational and experimental data," MPRA Paper 32383, University Library of Munich, Germany.
- Steffen Andersen & Seda Ertac & Uri Gneezy & John A. List & Sandra Maximiano, 2013. "Gender, Competitiveness, and Socialization at a Young Age: Evidence From a Matrilineal and a Patriarchal Society," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1438-1443, October.
- Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
- Blom, Andreas & Saeki, Hiroshi, 2011. "Employability and skill set of newly graduated engineers in India," Policy Research Working Paper Series 5640, The World Bank.
- Koellinger, Philipp & Minniti, Maria & Schade, Christian, 2007.
""I think I can, I think I can": Overconfidence and entrepreneurial behavior,"
Journal of Economic Psychology,
Elsevier, vol. 28(4), pages 502-527, August.
- Philipp Köllinger & Maria Minniti & Christian Schade, 2005. ""I Think I Can, I Think I Can": Overconfidence and Entrepreneurial Behavior," Discussion Papers of DIW Berlin 501, DIW Berlin, German Institute for Economic Research.
- Becketti, Sean, et al, 1988. "The Panel Study of Income Dynamics after Fourteen Years: An Evaluatio n," Journal of Labor Economics, University of Chicago Press, vol. 6(4), pages 472-92, October.
- Dean S. Karlan, 2005. "Using Experimental Economics to Measure Social Capital And Predict Financial Decisions," Working Papers 909, Economic Growth Center, Yale University.
- Ernst Fehr & Lorenz Gï¿½tte, 2005.
"Do Workers Work More if Wages are High? Evidence from a Randomized Field Experiment,"
IEW - Working Papers
125, Institute for Empirical Research in Economics - University of Zurich.
- Ernst Fehr & Lorenz Goette, 2007. "Do Workers Work More if Wages Are High? Evidence from a Randomized Field Experiment," American Economic Review, American Economic Association, vol. 97(1), pages 298-317, March.
- Ernst Fehr & Lorenz Goette, 2007. "Do workers work more if wages are high? Evidence from a randomized field experiment," Natural Field Experiments 00240, The Field Experiments Website.
- Pablo Ibarrarán & David Rosas Shady, 2009. "Evaluating the impact of job training programmes in Latin America: evidence from IDB funded operations," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 1(2), pages 195-216, June.
- Macours, Karen & Premand, Patrick & Vakis, Renos, 2012.
"Transfers, Diversification and Household Risk Strategies: Experimental evidence with lessons for climate change adaptation,"
CEPR Discussion Papers
8940, C.E.P.R. Discussion Papers.
- Macours, Karen & Premand, Patrick & Vakis, Renos, 2012. "Transfers, diversification and household risk strategies : experimental evidence with lessons for climate change adaptation," Policy Research Working Paper Series 6053, The World Bank.
- Dean S. Karlan, 2005.
"Using Experimental Economics to Measure Social Capital and Predict Financial Decisions,"
American Economic Review,
American Economic Association, vol. 95(5), pages 1688-1699, December.
- Dean Karlan, 2004. "Using experimental economics to measure social capital and predict financial decisions," Artefactual Field Experiments 00074, The Field Experiments Website.
- Hanming Fang & Giuseppe Moscarini, 2004.
Yale School of Management Working Papers
ysm386, Yale School of Management.
- David S. Lee, 2009. "Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects," Review of Economic Studies, Oxford University Press, vol. 76(3), pages 1071-1102.
- LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September.
- Orazio Attanasio & Adriana Kugler & Costas Meghir, 2011. "Subsidizing Vocational Training for Disadvantaged Youth in Colombia: Evidence from a Randomized Trial," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 188-220, July.
- Biais, Bruno & Hilton, Denis & Mazurier, Karine & Pouget, Sébastien, 2004.
"Judgmental Overconfidence, Self-Monitoring and Trading Performance in an Experimental Financial Market,"
IDEI Working Papers
259, Institut d'Économie Industrielle (IDEI), Toulouse.
- Bruno Biais & Denis Hilton & Karine Mazurier & Sébastien Pouget, 2005. "Judgemental Overconfidence, Self-Monitoring, and Trading Performance in an Experimental Financial Market," Review of Economic Studies, Oxford University Press, vol. 72(2), pages 287-312.
- Marco Castillo & Ragan Petrie & Maximo Torero, 2010.
"On The Preferences Of Principals And Agents,"
Western Economic Association International, vol. 48(2), pages 266-273, 04.
- Marco Castillo & Ragan Petrie & Maximo Torero, 2007. "On The Preferences of Principals and Agents," Experimental Economics Center Working Paper Series 2007-12, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
- Erica Field & Seema Jayachandran & Rohini Pande, 2010. "Do Traditional Institutions Constrain Female Entrepreneurship? A Field Experiment on Business Training in India," American Economic Review, American Economic Association, vol. 100(2), pages 125-29, May.
- Fafchamps, Marcel & McKenzie, David & Quinn, Simon & Woodruff, Christopher, 2014. "Microenterprise growth and the flypaper effect: Evidence from a randomized experiment in Ghana," Journal of Development Economics, Elsevier, vol. 106(C), pages 211-226.
- Kaivan Munshi & Mark Rosenzweig, 2006. "Traditional Institutions Meet the Modern World: Caste, Gender, and Schooling Choice in a Globalizing Economy," American Economic Review, American Economic Association, vol. 96(4), pages 1225-1252, September.
When requesting a correction, please mention this item's handle: RePEc:mos:moswps:2012-44. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Simon Angus)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.