Household Wealth and Heterogeneous Impacts of a Market-Based Training Program: The Case of PROJOVEN in Peru

PEP PMMA Working Paper Series 2008-02

38 Pages Posted: 14 May 2018 Last revised: 12 Jul 2018

See all articles by Jose Galdo

Jose Galdo

McMaster University

Miguel Jaramillo

Grupo de Analisis para el Desarrollo (GRADE)

Verónica Montalva

Inter-American Development Bank (IDB)

Date Written: January 1, 2008

Abstract

This paper analyzes the relationship between households’ wealth and heterogeneous treatment impacts for a market-based training program that has benefited more than 40,000 disadvantaged individuals in Peru since 1996. We proxy long-run wealth by a linear index based on 21 household assets, and three main findings emerge. First, we find that voluntary choices among eligibles, rather than administrative choices, play a bigger role in explaining demographic disparities in program participation. Second, quantile treatment effects on the treated suggest important differences in program impacts at different quantiles of earnings, and strong differences in distributional impacts for men and women. Third, both parametric- based and semiparametric regression-matching estimates reveal that the poorest among the poor benefit the same from the program. It is the type of institution that provides the training services that largely accounts for the heterogeneity of the impacts.

Keywords: training, program evaluation, factor analysis, poverty, quantiles, matching methods

Suggested Citation

Galdo, Jose and Jaramillo, Miguel and Montalva, Verónica, Household Wealth and Heterogeneous Impacts of a Market-Based Training Program: The Case of PROJOVEN in Peru (January 1, 2008). PEP PMMA Working Paper Series 2008-02. Available at SSRN: https://ssrn.com/abstract=3171612 or http://dx.doi.org/10.2139/ssrn.3171612

Jose Galdo

McMaster University ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4
Canada

Miguel Jaramillo (Contact Author)

Grupo de Analisis para el Desarrollo (GRADE) ( email )

Av, Graú 915
Barranco, Lima
Peru

Verónica Montalva

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

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