Long-Term Educational Consequences of Vocational Training in Colombia: Impacts on Young Trainees and Their Relatives

63 Pages Posted: 12 Oct 2015

See all articles by Adriana D. Kugler

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)

Maurice Kugler

IMPAQ International LLC

Juan Saavedra

University of Southern California - Department of Economics; Center for Economic and Social Research (CESR)

Luis Omar Herrera Prada

World Bank

Date Written: October 2015

Abstract

We use administrative data and a randomization design to examine the long-term educational impacts of a large-scale vocational training program for disadvantaged youth in Colombia on trainees and their relatives. Up to eleven years after randomization, trainees were more likely to enroll in formal tertiary education, and their relatives more likely to complete secondary schooling. Various empirical tests suggest that, for females, vocational training helped relax credit constraints stemming from the direct costs of tertiary education. For males, the evidence suggests that additional tertiary education investments arise from the program improving field-specific knowledge and/or information about field-specific returns to tertiary education. Focusing only on labor-market outcomes and not accounting for these long-term tertiary education impacts on participants substantially understates the social desirability of the Colombian vocational training program. By contrast, including tertiary education impacts on participants increases the program’s internal rate of return for women from 22.2% to 23.5% and for men from 10.2% to 20.5%.

Suggested Citation

Kugler, Adriana Debora and Kugler, Maurice and Saavedra, Juan and Herrera Prada, Luis Omar, Long-Term Educational Consequences of Vocational Training in Colombia: Impacts on Young Trainees and Their Relatives (October 2015). NBER Working Paper No. w21607. Available at SSRN: https://ssrn.com/abstract=2672708

Adriana Debora Kugler (Contact Author)

McCourt School of Public Policy ( email )

3700 O ST NW
311 Old North
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Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
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National Bureau of Economic Research (NBER) ( email )

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Cambridge, MA 02138
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Maurice Kugler

IMPAQ International LLC ( email )

1325 G Street, NW
Suite 900
Washington, DC 20005
United States

Juan Saavedra

University of Southern California - Department of Economics ( email )

3620 South Vermont Ave. Kaprielian (KAP) Hall, 300
Los Angeles, CA 90089
United States

Center for Economic and Social Research (CESR)

635 Downey Way
Los Angeles, CA 90089-3332
United States

Luis Omar Herrera Prada

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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