Signaling Worker Quality in a Developing Country: Lessons from a Certification Program

M. Antonella Mancino, Leonardo Fabio Morales, Diego F. Salazar ()
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M. Antonella Mancino, Leonardo Fabio Morales, Diego F. Salazar: Wilfrid Laurier University, https://www.wlu.ca/academics/faculties/lazaridis-s

LCERPA Working Papers from Laurier Centre for Economic Research and Policy Analysis

Abstract: We evaluate the returns to signaling occupation-specific skills using unique administrative data from a nationwide certification program in Colombia. The program certifies skills and issues three certificates: basic, intermediate, and advanced. We use regression discontinuity methods to compare workers’ earnings around certificate assignment thresholds. Signaling advanced occupation-specific skills yields significant returns: 9.7%, on average, within two years of certification. Instead, we find no effects from signaling basic or intermediate occupation-specific skills. Our analysis reveals that the primary mechanism behind the observed income effects associated with the advanced certificate is the ability to signal occupation-specific skills to potential employers.

JEL-codes: J01 J31 J44 (search for similar items in EconPapers)
Pages: 79
Date: 2024-04
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