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Living with the Neighbors: Demand-Driven Youth Training Programs: Experimental Evidence from Mongolia

Author

Listed:
  • Maria Laura Alzúa

    (CEDLAS-Facultad de Ciencias Económicas-Universidad Nacional de La Plata, Conicet, PEP)

  • Soyolmaa Batbekh

    (National university of Mongolia)

  • Altantsetseg Batchuluun

    (National university of Mongolia)

  • Bayarmaa Dalkhjavd

    (School of Economic Studies- National university of Mongolia)

  • José Galdo

    (SPPA and Department of Economics -Carleton University)

Abstract

Because of its high incidence and potential threat to social cohesion, youth unemployment is a global concern. This study uses a randomized controlled trial to analyze the effectiveness of a demand-driven vocational training program for disadvantaged youth in Mongolia. Mongolia, a transitional country whose economic structure shifted from a communist, centrally planned economy to a free-market economy over a relatively short period, offers a new setting in which to test the effectiveness of standard active labor market policies. This study reports positive and statistically significant short-term effects of vocational training on monthly earnings, skills matching, and self-employment. Substantial heterogeneity emerges as relatively older, richer, and better-educated individuals drive these positive effects. A second intervention that randomly assigns participants to receive repetitive weekly newsletters with information on market returns to vocational training shows positive impacts on the length of exposure to and successful completion of the program. These positive effects, however, are only observed at the intensive margin and do not lead to higher employment or earnings outcomes.

Suggested Citation

  • Maria Laura Alzúa & Soyolmaa Batbekh & Altantsetseg Batchuluun & Bayarmaa Dalkhjavd & José Galdo, 2019. "Living with the Neighbors: Demand-Driven Youth Training Programs: Experimental Evidence from Mongolia," CEDLAS, Working Papers 0249, CEDLAS, Universidad Nacional de La Plata.
    • Handle: RePEc:dls:wpaper:0249
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • 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
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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