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Can German vocational training combat skill shortages in developing countries? Evidence from dual training system in the Philippines

Futoshi Yamauchi, Taejong Kim, Kye Woo Lee and Marites Tiongco

No 1744, IFPRI discussion papers from International Food Policy Research Institute (IFPRI)

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); J24 Human Capital; Skills; Occupational Choice; Labor Productivity; O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration; M53 Personnel Economics: Training (search for similar items in EconPapers)
Date: 2018
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