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Vocational Training Programs and Youth Labor Market Outcomes: Evidence from Nepal

Shubha Chakravarty (), Mattias Lundberg (), Plamen Nikolov and Juliane Zenker
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Shubha Chakravarty: The World Bank
Mattias Lundberg: The World Bank

No 2017-056, Working Papers from Human Capital and Economic Opportunity Working Group

Abstract: Lack of skills is arguably one of the most important determinants for high levels of unemployment and poverty. Targeting youth unemployment and also important because of its strong influence on other important social outcomes. Using a “fuzzy” regression discontinuity design, we examine the employment effects of a vocational training program in Nepal launched in 2009 over a three-year period. We find program participation generated an increase in non-farm employment of 28 percentage points for an overall gain of 95 percent, three years into the program. The program also generated an average monthly earnings gain of 2,167NRs (˜ 29 USD) or 171 percent. Applying heterogeneous local average treatment effect (HLATE) estimators, we find striking differences in the impacts by gender: program impacts are almost double the size for women than for men.

Keywords: training; employment; labor; economic development; Nepal; Regression Discontinuity; gender (search for similar items in EconPapers)
JEL-codes: I21 I28 I38 J08 J24 O15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-lab
Date: 2017-07
Note: ECI, MIP
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http://humcap.uchicago.edu/RePEc/hka/wpaper/Chakra ... l-training-nepal.pdf First version, July 2017 (application/pdf)
http://humcap.uchicago.edu/RePEc/hka/wpaper/Chakra ... raining-nepal_r1.pdf Revised version, April 2018 (application/pdf)

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Journal Article: Vocational training programs and youth labor market outcomes: Evidence from Nepal (2019) Downloads
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