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The Labor Market Impacts of Youth Training in the Dominican Republic: Evidence from a Randomized Evaluation

Author

Listed:
  • David Card
  • Pablo Ibarraran
  • Ferdinando Regalia
  • David Rosas
  • Yuri Soares

Abstract

This paper summarizes the findings from the first randomized evaluation of a job training program in Latin America. Between 2001 and 2005 the government of the Dominican Republic operated a subsidized training program for low-income youth in urban areas. The program featured several weeks of classroom instruction followed by an internship at a private sector firm. A random sample of eligible applicants was selected to undergo training, and information was gathered 10-14 months after graduation on both trainees and control group members. Although previous non-experimental evaluations of similar programs in Latin America have suggested a positive impact on employment, we find no evidence of such an effect. There is a marginally significant impact on hourly wages, and on the probability of health insurance coverage, conditional on employment. Finally, we develop an operational definition of the impact of training on "employability" in the context of a dynamic model with state dependence and unobserved heterogeneity. Consistent with our main results, we find no significant impact of the training program on the subsequent employability of trainees.

Suggested Citation

  • 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.
  • Handle: RePEc:nbr:nberwo:12883
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    References listed on IDEAS

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    2. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
    3. David Card & Dean R. Hyslop, 2005. "Estimating the Effects of a Time-Limited Earnings Subsidy for Welfare-Leavers," Econometrica, Econometric Society, vol. 73(6), pages 1723-1770, November.
    4. James Heckman & Neil Hohmann & Jeffrey Smith & Michael Khoo, 2000. "Substitution and Dropout Bias in Social Experiments: A Study of an Influential Social Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 651-694.
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    6. Dolton, Peter J & Makepeace, Gerald H & Treble, John G, 1994. "The Wage Effect of YTS: Evidence from YCS," Scottish Journal of Political Economy, Scottish Economic Society, vol. 41(4), pages 444-453, November.
    7. repec:mpr:mprres:2950 is not listed on IDEAS
    8. Card, David & Sullivan, Daniel G, 1988. "Measuring the Effect of Subsidized Training Programs on Movements in and out of Employment," Econometrica, Econometric Society, vol. 56(3), pages 497-530, May.
    9. Kluve, Jochen & Fertig, Michael & Jacobi, Lena & Nima, Leonhard & Schaffner, Sandra & Schmidt, Christoph M. & Card, David & Góra, Marek & Jensen, Peter & Leetmaa, Reelika & Patacchini, Eleonora & van , 2005. "Study on the effectiveness of ALMPs: Research project for the European Commission, DG Employment, Social Affairs and Equal Opportunities. Final report," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 69929.
    10. Daniel Friedlander & David H. Greenberg & Philip K. Robins, 1997. "Evaluating Government Training Programs for the Economically Disadvantaged," Journal of Economic Literature, American Economic Association, vol. 35(4), pages 1809-1855, December.
    11. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection Discussion Papers and Notes 29142, The World Bank.
    12. Dolton, Peter J, 1993. "The Economics of Youth Training in Britain," Economic Journal, Royal Economic Society, vol. 103(420), pages 1261-1278, September.
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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