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Signaling worker quality in a developing country: Lessons from a certification program

Author

Listed:
  • Mancino, M. Antonella
  • Morales, Leonardo Fabio
  • Salazar, Diego F.

Abstract

We evaluate the returns to signaling occupation-specific skills using unique administrative data from a nationwide certification program in Colombia. The program certifies skills and issues three certificates: basic, intermediate, and advanced. We use regression discontinuity methods to compare workers' earnings around certificateassignment thresholds. Signaling advanced occupation-specific skills yields significant returns: 9.7%, on average, within two years of certification. Instead, we find no effects from signaling basic or intermediate occupation-specific skills. Our analysis reveals that the primary mechanism behind the observed income effects associated with the advanced certificate is the ability to signal occupation-specific skills to potential employers.

Suggested Citation

  • Mancino, M. Antonella & Morales, Leonardo Fabio & Salazar, Diego F., 2024. "Signaling worker quality in a developing country: Lessons from a certification program," CLEF Working Paper Series 69, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    • Handle: RePEc:zbw:clefwp:294853
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    More about this item

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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