Subsidizing Vocational Training for Disadvantaged Youth in Developing Countries: Evidence from a Randomized Trial

46 Pages Posted: 30 Jun 2009

See all articles by Orazio Attanasio

Orazio Attanasio

University College London - Department of Economics; Institute for Fiscal Studies (IFS); Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Adriana D. Kugler

McCourt School of Public Policy ; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; National Bureau of Economic Research (NBER)

Costas Meghir

Yale University; Yale University - Cowles Foundation; Institute for Fiscal Studies (IFS); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Abstract

This paper evaluates the impact of a randomized training program for disadvantaged youth introduced in Colombia in 2005. This randomized trial offers a unique opportunity to examine the impact of training in developing countries. We use originally collected data on individuals randomly offered and not offered training. The program raises earnings and employment, especially for women. Women offered training earn 18% more and have a 0.05 higher probability of employment than those not offered training, mainly in formal sector jobs. Cost-benefit analysis of these results suggests that the program generates much larger net gains than those found in developed countries.

Keywords: vocational training, randomized trials

JEL Classification: C21, I38, J24

Suggested Citation

Attanasio, Orazio and Kugler, Adriana Debora and Meghir, Costas, Subsidizing Vocational Training for Disadvantaged Youth in Developing Countries: Evidence from a Randomized Trial. IZA Discussion Paper No. 4251. Available at SSRN: https://ssrn.com/abstract=1426738

Orazio Attanasio (Contact Author)

University College London - Department of Economics ( email )

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Institute for Fiscal Studies (IFS)

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Centre for Economic Policy Research (CEPR)

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National Bureau of Economic Research (NBER)

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Adriana Debora Kugler

McCourt School of Public Policy ( email )

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Centre for Economic Policy Research (CEPR) ( email )

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IZA Institute of Labor Economics ( email )

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National Bureau of Economic Research (NBER) ( email )

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Costas Meghir

Yale University ( email )

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Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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