Does the Quality of Training Programs Matter? Evidence from Bidding Processes Data

Alberto Chong and Jose Galdo

No 4451, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: This paper estimates the effect of training quality on labor-market earnings using a Peruvian non-experimental training program, PROJOVEN, which targets disadvantaged youths aged 16 to 24 years. The identification of causal effects is possible because of two attractive features in the data. First, the selection of training courses is based on public bidding processes that assign standardized scores to multiple proxies for quality. Second, the program`s evaluation framework allows for the identification and comparison of individuals in the treatment and comparison groups six, 12, and 18 months after the program. Using difference-in-differences kernel matching methods, we find that individuals attending high-quality training courses have higher average and marginal treatment impacts. The external validity of our estimates was assessed by using five different calls of this program over a nine-year period.

Date: 2006-06
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Citations: View citations in EconPapers (15)

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Working Paper: Does the Quality of Training Programs Matter? Evidence from Bidding Processes Data (2006)
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