IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/21390.html
   My bibliography  Save this paper

Long Term Impacts of Vouchers for Vocational Training: Experimental Evidence for Colombia

Author

Listed:
  • Orazio Attanasio
  • Arlen Guarín
  • Carlos Medina
  • Costas Meghir

Abstract

We use experimental data of a training program in 2005 in Colombia. We find that even up to ten years ahead, the JeA program had a positive and significant effect on the probability to work in the formal sector. Applicants in the treatment group also contributed more months to social security during the analyzed period, and to work for a large firm. Earnings of treated applicants were 11.8% higher in the whole sample, and they made larger contributions to social security. In addition, we also present non parametric bounds that for some percentiles of the sample of women, there are positive and nearly significant effects of the program. Thus, the effects of the program would have been capitalized both in increases in the likelihood of being formal, and increases in productivity. We also present evidence that the estimated program effects on the likelihood of working for the formal sector, the likelihood of working for a large firm, and the earnings in the formal sector, are not an artifact of analyzing multiple outcomes. We also find that for the whole sample of applicants, those in the treatment group have 0.315 more years of education, and have a probability of graduating from high school 10 percent higher than the control group. We find no significant effect on the probability of attending college or any school program, nor on fertility decisions, marital status or some dimensions of assortative mating. Among applicants matching to the census of the poorest population, we find that beneficiaries are more likely to participate in the labor market, to be employed, and to be enrolled in a private health insurance at the time of the survey. Finally, we find that the benefits of the JeA program are higher than it costs, leading to an internal rate of return of at least 22.1 percent. On the whole, the program was a cost-effective alternative, worth to consider to bridging the transit of youths from the informal to the formal sector in the future.

Suggested Citation

  • Orazio Attanasio & Arlen Guarín & Carlos Medina & Costas Meghir, 2015. "Long Term Impacts of Vouchers for Vocational Training: Experimental Evidence for Colombia," NBER Working Papers 21390, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:21390
    Note: DEV ED EFG
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w21390.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Joseph P. Romano & Michael Wolf, 2005. "Stepwise Multiple Testing as Formalized Data Snooping," Econometrica, Econometric Society, vol. 73(4), pages 1237-1282, July.
    2. Peter Z. Schochet & Sheena McConnell & John Burghardt, "undated". "National Job Corps Study: Findings Using Administrative Earnings Records Data," Mathematica Policy Research Reports 9da2c5a07ad046419448e94e1, Mathematica Policy Research.
    3. Costas Meghir & Renata Narita & Jean-Marc Robin, 2015. "Wages and Informality in Developing Countries," American Economic Review, American Economic Association, vol. 105(4), pages 1509-1546, April.
    4. Pablo Ibarraran & Laura Ripani & Bibiana Taboada & Juan Villa & Brigida Garcia, 2014. "Life skills, employability and training for disadvantaged youth: Evidence from a randomized evaluation design," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-24, December.
    5. V. Joseph Hotz & Guido W. Imbens & Jacob A. Klerman, 2006. "Evaluating the Differential Effects of Alternative Welfare-to-Work Training Components: A Reanalysis of the California GAIN Program," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 521-566, July.
    6. Tamayo, Jorge Andrés & Núñez, Jairo & Medina, Carlos, 2013. "The Unemployment Subsidy Program in Colombia: An Assessment," IDB Publications (Working Papers) 4622, Inter-American Development Bank.
    7. Grönqvist, Hans & Hall, Caroline, 2013. "Education policy and early fertility: Lessons from an expansion of upper secondary schooling," Economics of Education Review, Elsevier, vol. 37(C), pages 13-33.
    8. Hugo López Castaño, 2010. "EL MERCADO LABORAL COLOMBIANO: Tendencias de largo plazo y sugerencias de política," Borradores de Economia 606, Banco de la Republica de Colombia.
    9. Chicoine, Luke, 2012. "Education and Fertility: Evidence from a Policy Change in Kenya," IZA Discussion Papers 6778, Institute of Labor Economics (IZA).
    10. Joshua Angrist & Eric Bettinger & Michael Kremer, 2006. "Long-Term Educational Consequences of Secondary School Vouchers: Evidence from Administrative Records in Colombia," American Economic Review, American Economic Association, vol. 96(3), pages 847-862, June.
    11. 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.
    12. SandraE. Black & PaulJ. Devereux & KjellG. Salvanes, 2008. "Staying in the Classroom and out of the maternity ward? The effect of compulsory schooling laws on teenage births," Economic Journal, Royal Economic Society, vol. 118(530), pages 1025-1054, July.
    13. 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.
    14. Romano, Joseph P. & Shaikh, Azeem M. & Wolf, Michael, 2008. "Formalized Data Snooping Based On Generalized Error Rates," Econometric Theory, Cambridge University Press, vol. 24(2), pages 404-447, April.
    15. Lucia Breierova & Esther Duflo, 2003. "The Impact of Education on Fertility and Child Mortality: Do Fathers Really Matter Less Than Mothers?," OECD Development Centre Working Papers 217, OECD Publishing.
    16. Carlos Medina & Jairo Núñez, 2005. "The Impact of Public and Private Job Training in Colombia," Research Department Publications 3177, Inter-American Development Bank, Research Department.
    17. Couch, Kenneth A, 1992. "New Evidence on the Long-Term Effects of Employment Training Programs," Journal of Labor Economics, University of Chicago Press, vol. 10(4), pages 380-388, October.
    18. Martha Bottia & Lina Cardona-Sosa & Carlos Medina, 2012. "El SISBEN como mecanismo de focalización individual del régimen subsidiado en salud en Colombia: ventajas y limitaciones," Revista de Economía del Rosario, Universidad del Rosario, December.
    19. Alan Greenspan, 1996. "Statement to Congress, July 26, 1996(General Accounting Office reports on the Federal Reserve's operations)," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue sep, pages 819-823.
    20. repec:mpr:mprres:3604 is not listed on IDEAS
    21. Mizuki Komura, 2013. "Fertility and endogenous gender bargaining power," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 943-961, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. 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.
    3. repec:eee:labeco:v:45:y:2017:i:c:p:131-142 is not listed on IDEAS
    4. repec:oup:wbrobs:v:32:y:2017:i:2:p:127-154. is not listed on IDEAS
    5. 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.
    6. 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.
    7. David McKenzie, 2017. "How Effective Are Active Labor Market Policies in Developing Countries? A Critical Review of Recent Evidence," World Bank Research Observer, World Bank Group, vol. 32(2), pages 127-154.
    8. Crépon, Bruno & van den Berg, Gerard J., 2016. "Active Labor Market Policies," IZA Discussion Papers 10321, Institute of Labor Economics (IZA).
    9. Piza, Caio & Souza, André Portela Fernandes de, 2016. "Short and long-term effects of a child-labor ban," Textos para discussão 428, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    10. Chongcharoentanawat, Patima & Gassmann, Franziska & Mohnen, Pierre, 2018. "Thailand's vocational training and upward mobility: Impact Heterogeneity and Policy Implications," MERIT Working Papers 043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. Wendy Cunningham & Pablo Acosta & Noël Muller, 2016. "Minds and Behaviors at Work," World Bank Publications, The World Bank, number 24659, September.
    12. Evan Borkum & Arif Mamun & Malik Khan Mubeen, "undated". "Evaluation of the Vocational Training Grant Fund in Namibia: Final Report," Mathematica Policy Research Reports c23d691613754f048ef486f03, Mathematica Policy Research.
    13. Mazzutti, Caio Cícero Toledo Piza da Costa, 2016. "Three essays on the causal impacts of child labour laws in Brazil," Economics PhD Theses 0616, Department of Economics, University of Sussex Business School.
    14. Canavire-Bacarreza, Gustavo & Díaz Serrano, Lluís & Corrales-Espinosa, Alejandro, 2018. "The Impact of Public Libraries on School Achievement: The Case of Medellin," Working Papers 2072/351580, Universitat Rovira i Virgili, Department of Economics.
    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. Andrés Ham & Darío Maldonado & Carlos Santiago Guzmán-Gutiérrez, 2019. "Tendencias recientes en la situación laboral de los jóvenes en Colombia: diagnóstico, desafíos y retos de política pública," Documentos de trabajo 017569, Escuela de Gobierno - Universidad de los Andes.
    17. Luz Adriana Florez & Lina Cardona-Sosa & Leonardo Fabio Morales & Julian Londoño, 2018. "The Returns from Training in Colombia: Evidence from a Longitudinal Survey," Borradores de Economia 1048, Banco de la Republica de Colombia.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:21390. 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: (). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.