Subsidizing Vocational Training for Disadvantaged Youth in Developing Countries: Evidence from a Randomized Trial

Orazio Attanasio, Adriana Kugler and Costas Meghir

No 4251, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper evaluates the impact of a randomized training program for disadvantaged youth introduced in Colombia in 2005. This randomized trial offers a unique opportunity to examine the impact of training in developing countries. We use originally collected data on individuals randomly offered and not offered training. The program raises earnings and employment, especially for women. Women offered training earn 18% more and have a 0.05 higher probability of employment than those not offered training, mainly in formal sector jobs. Cost-benefit analysis of these results suggests that the program generates much larger net gains than those found in developed countries.

Keywords: randomized trials; vocational training (search for similar items in EconPapers)
JEL-codes: C21 I38 J24 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2009-06
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (15)

Published - published in: American Economic Journal: Applied Economics, 2011, 3 (3), 188-220

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