Learning and Earning: Evidence from a Randomized Evaluation in India

Fordham University, Department of Economics, Discussion Paper Series 2013-02

50 Pages Posted: 17 Oct 2013

See all articles by Pushkar Maitra

Pushkar Maitra

Monash University - Department of Economics

Subha Mani

Fordham University - Fordham College at Rose Hill

Multiple version iconThere are 2 versions of this paper

Date Written: August 7, 2013

Abstract

This paper estimates the short-and-medium-run effects of participating in a subsidized vocational training program aimed at improving labor market outcomes of women residing in low-income households in a developing country. We combine pre-intervention data with two rounds of post-intervention data from a field experiment to quantify the short-and-medium-run effects of the program. In the short-run, we find that program participants are significantly more likely to be employed, work additional hours, and earn more. These short-run impact estimates are all sustained in the medium-run. We also identify credit constraints, local access, and lack of proper child care support as important barriers to program participation and completion. We are able to rule out two alternative mechanisms -- signalling and change in behavior that can drive these findings. Finally, a simple cost-benefit analysis suggests that the program is highly cost effective.

Keywords: Vocational training, Panel data, India, Economic returns, Field Experiment

JEL Classification: I21, J19, J24, 015

Suggested Citation

Maitra, Pushkar and Mani, Subha, Learning and Earning: Evidence from a Randomized Evaluation in India (August 7, 2013). Fordham University, Department of Economics, Discussion Paper Series 2013-02. Available at SSRN: https://ssrn.com/abstract=2341125 or http://dx.doi.org/10.2139/ssrn.2341125

Pushkar Maitra

Monash University - Department of Economics ( email )

Wellington Road
Clayton, Victoria 3
Australia
61 3 9905 5832 (Phone)
61 3 9905 5476 (Fax)

Subha Mani (Contact Author)

Fordham University - Fordham College at Rose Hill ( email )

United States

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