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The long-term effects of job training on labor market and skills outcomes in Chile

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  • Doerr, Annabelle
  • Novella, Rafael

Abstract

Job training programs can be an effective policy for improving productivity and labor market outcomes in low- and middle-income countries. We report medium- and long-term impacts of a job training program for vulnerable workers in Chile on labor market and skill outcomes using experimental and administrative data. We estimate intention-to-treat effects, accounting for potential non-compliance by training providers in the assignment process, as well as local average treatment effects due to noncompliance with the assigned treatment status. Overall, the program shows limited effectiveness. While we find some positive impacts on labor income, the program fails to improve most labor outcomes. A detailed investigation of heterogenous effects by course-type, training provider and course quality, and gender reveals that the positive income effects are more likely to be realized for males and participants in courses that were offered by high-quality providers. Evidence on mechanisms indicates that the program's limited impact on labor outcomes could, at least partly, be due to its limited effect on workers’ skills.

Suggested Citation

  • Doerr, Annabelle & Novella, Rafael, 2024. "The long-term effects of job training on labor market and skills outcomes in Chile," Labour Economics, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:labeco:v:91:y:2024:i:c:s0927537124001155
    DOI: 10.1016/j.labeco.2024.102619
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    Cited by:

    1. Novella, Rafael & Ramirez, Ericka G. Rascón, 2024. "Question-order effects on judgements under uncertainty," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
    2. Ulku,Hulya & Georgieva,Dorina Peteva, 2022. "Unemployment Benefits, Active Labor Market Policies, and Labor Market Outcomes : Evidence from New Global Data," Policy Research Working Paper Series 10027, The World Bank.

    More about this item

    Keywords

    Job training; Skills; RCT; Administrative data; Training provider quality;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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