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Living with the Neighbors: Demand-Driven Youth Training Programs: Experimental Evidence from Mongolia

Maria Laura Alzúa, Soyolmaa Batbekh, Altantsetseg Batchuluun (), Bayarmaa Dalkhjavd and Jose Galdo
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Maria Laura Alzúa: CEDLAS-Facultad de Ciencias Económicas-Universidad Nacional de La Plata, Conicet, PEP
Soyolmaa Batbekh: National university of Mongolia
Bayarmaa Dalkhjavd: School of Economic Studies- National university of Mongolia

CEDLAS, Working Papers from CEDLAS, Universidad Nacional de La Plata

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.

JEL-codes: J18 J08 J24 J38 C93 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp and nep-tra
Date: 2019-08
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