Demand-Driven Youth Training Programs: Experimental Evidence from Mongolia

40 Pages Posted: 27 Jun 2019

See all articles by Maria Laura Alzua

Maria Laura Alzua

Universidad Nacional de La Plata - Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS)

Soyolmaa Batbekh

National University of Mongolia

Altantsetseg Batchuluun

National University of Mongolia; National University of Mongolia

Bayarmaa Dalkhjav

National University of Mongolia - School of Economic Studies

Jose Galdo

McMaster University

Date Written: June 26, 2019

Abstract

Because of its high incidence and potential threat to social cohesion, youth unemployment is a global concern. This study uses a randomized controlled trial to analyze the effectiveness of a demand-driven vocational training program for disadvantaged youth in Mongolia. Mongolia, a transitional country whose economic structure shifted from a communist, centrally planned economy to a free-market economy over a relatively short period, offers a new setting in which to test the effectiveness of standard active labor market policies. This study reports positive and statistically significant short-term effects of vocational training on monthly earnings, skills matching, and self-employment. Substantial heterogeneity emerges as relatively older, richer, and better-educated individuals drive these positive effects. A second intervention that randomly assigns participants to receive repetitive weekly newsletters with information on market returns to vocational training shows positive impacts on the length of exposure to and successful completion of the program. These positive effects, however, are only observed at the intensive margin and do not lead to higher employment or earnings outcomes.

Keywords: vocational training programs, labor market, randomized controlled trial, employment, earnings, job quality

JEL Classification: J18, J08, J24, J38, C93

Suggested Citation

Alzua, Maria Laura and Batbekh, Soyolmaa and Batchuluun, Altantsetseg and Batchuluun, Altantsetseg and Dalkhjav, Bayarmaa and Galdo, Jose, Demand-Driven Youth Training Programs: Experimental Evidence from Mongolia (June 26, 2019). Partnership for Economic Policy Working Paper No. 2019-11, Available at SSRN: https://ssrn.com/abstract=3410565 or http://dx.doi.org/10.2139/ssrn.3410565

Maria Laura Alzua (Contact Author)

Universidad Nacional de La Plata - Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS) ( email )

Calle 6 e/47 y 48
La Plata, Provincia de Buenos Aires 1900
Argentina

Soyolmaa Batbekh

National University of Mongolia ( email )

IKH SURGUULIIN GUDAMJ-1 P.O.BOX -46A/523
Ulaanbaatar, Tov aimag 14201
Mongolia

Altantsetseg Batchuluun

National University of Mongolia ( email )

Baga of toyruu-ya 350994
Mongolia

National University of Mongolia ( email )

Ulaanbaatar
Mongolia

Bayarmaa Dalkhjav

National University of Mongolia - School of Economic Studies ( email )

Ulaanbaatar
Mongolia

Jose Galdo

McMaster University ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4
Canada

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