Can German Vocational Training Combat Skill Shortages in Developing Countries? Evidence from Dual Training System in the Philippines

IFPRI Discussion Paper 1744

32 Pages Posted: 11 Sep 2018

See all articles by Futoshi Yamauchi

Futoshi Yamauchi

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI)

Taejong Kim

KDI School of Public Policy and Management

Kye Woo Lee

KDI School of Public Policy and Management

Marites Tiongco

De La Salle University

Date Written: July 20, 2018

Abstract

This paper estimates the impacts of the Philippine Dual Training System (DTS) on labor market outcomes using a recent survey that tracked graduates from DTS and non-DTS programs provided by vocational training institutes. DTS programs partner with local employers to combine on-the-job training (OJT) with the conventional school- or center-based instruction, while non-DTS programs consist solely of the latter. The estimation results in Fuzzy Regression Discontinuity Design show a significantly positive impact on the most-recent monthly earnings. The impact significantly increases with the OJT intensity, measured by the number of hours of in-company OJT. The above results imply that the role played by OJT is essential to support higher earnings for DTS graduates.

Keywords: PHILIPPINES, SOUTH EAST ASIA, ASIA, labor market, vocational training, human capital, investment, training programs, on-the-job training, economic development, Dual Training System (DTS)

JEL Classification: J24, O15, M53

Suggested Citation

Yamauchi, Futoshi and Kim, Taejong and Lee, Kye Woo and Tiongco, Marites, Can German Vocational Training Combat Skill Shortages in Developing Countries? Evidence from Dual Training System in the Philippines (July 20, 2018). IFPRI Discussion Paper 1744, Available at SSRN: https://ssrn.com/abstract=3240208

Futoshi Yamauchi (Contact Author)

A member of the CGIAR Consortium - International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Taejong Kim

KDI School of Public Policy and Management ( email )

P.O. Box 184
Seoul, 130-868
Korea, Republic of (South Korea)

Kye Woo Lee

KDI School of Public Policy and Management ( email )

P.O. Box 184
Seoul, 130-868
Korea, Republic of (South Korea)

Marites Tiongco

De La Salle University ( email )

2401 Taft Avenue
Manila, Metro Manila 1004
Philippines

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