Learning and Earning: Evidence from a Randomized Evaluation in India

50 Pages Posted: 25 Oct 2014

See all articles by Pushkar Maitra

Pushkar Maitra

Monash University - Department of Economics

Subha Mani

Fordham University - Fordham College at Rose Hill

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Abstract

This paper presents the treatment effects from participating in a subsidized vocational training program targeted at women residing in low-income households in India. We combine pre-intervention data with two rounds of post-intervention data from a randomized field experiment to quantify the 6- and 18-month treatment effects of the program. The 6-month effects of the program indicate that women who were offered the training program are 6 percentage points more likely to be employed, 4 percentage points more likely to be self-employed, work 2.5 additional hours per week, and earn 150 percent more per month than women in the control group.Using a second round of follow-up data collected 18 months after the intervention, we find that the 6-month treatment effects are all sustained over this period. Our findings indicate credit constraints, distance, and lack of proper child care support as important barriers to program completion. Further, we also rule out two alternative mechanisms – signalling and behavior that could 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. IZA Discussion Paper No. 8552. Available at SSRN: https://ssrn.com/abstract=2514745

Pushkar Maitra (Contact Author)

Monash University - Department of Economics ( email )

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

Subha Mani

Fordham University - Fordham College at Rose Hill ( email )

United States

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