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Training the disadvantaged youth and labor market outcomes: Evidence from Bangladesh

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  • Das, Narayan

Abstract

This paper estimates the effects of a youth training program in Bangladesh on labor market outcomes. The program, organized as a randomized controlled trial, provides on-the-job and classroom training to disadvantaged unemployed youth. ITT results show that six months after the intervention, on-the-job training increases labor market participation by 16 percentage points and earnings by 23%. The effect on employment declines in the long-run, after 22 months, but the effect on earnings is sustained as the program induces a shift from casual work to wage employment. Adding classroom training over on-the-job training has no short term effect on aggregate employment and earnings but it has more sustained effect.

Suggested Citation

  • Das, Narayan, 2021. "Training the disadvantaged youth and labor market outcomes: Evidence from Bangladesh," Journal of Development Economics, Elsevier, vol. 149(C).
    • Handle: RePEc:eee:deveco:v:149:y:2021:i:c:s0304387820301607
    DOI: 10.1016/j.jdeveco.2020.102585
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    Cited by:

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    2. Dávila, Dayana & Alvarado, Rafael, 2022. "Análisis del impacto de la Ley Orgánica para la Promoción del Trabajo Juvenil, Regulación Excepcional de la Jornada de Trabajo, Cesantía y Seguro de Desempleo, sobre el desempleo juvenil en Ecuador," MPRA Paper 113709, University Library of Munich, Germany.
    3. Vandenberg, Paul & Laranjo, Jade, 2021. "Vocational training and labor market outcomes in the Philippines," International Journal of Educational Development, Elsevier, vol. 87(C).
    4. Novella, Rafael & Rosas-Shady, David & Freund, Richard, 2024. "Is online job training for all? Experimental evidence on the effects of a Coursera program in Costa Rica," Journal of Development Economics, Elsevier, vol. 169(C).
    5. Md. Towhid Al Rafi & Namira Morshed & Md. Sakif Al Wasee & Md. Shahinul Islam & Md. Kaium Ali, 2024. "Effectiveness of Technical Training Program of the Bangladesh Government Towards Employability in the Job Market," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(5), pages 1891-1907, May.

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    Keywords

    Training; Earnings; Youth; Bangladesh;
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