IDEAS home Printed from https://ideas.repec.org/p/idb/brikps/7367.html
   My bibliography  Save this paper

Experimental Evidence on the Long Term Impacts of a Youth Training Program

Author

Listed:
  • Kluve, Jochen
  • Ripani, Laura
  • Rosas-Shady, David

Abstract

This paper presents the results of a randomized controlled trial on the long-term impacts of a youth training program. The empirical analysis estimates labor market impacts six years after the training - including long-term labor market trajectories of young people - and, it is one of the first experimental long-term evaluation of a youth training program outside the US. We are able to track a representative sample of more than 3,200 youths at the six-year follow-up. Our empirical findings document significant impacts on the formality of employment, particularly for men, and impacts for both men and women in Santo Domingo, the capital of the Dominican Republic. The long-term analysis shows that these impacts are sustained and growing over time. There are no impacts on average employment, which is consistent with the low unemployment in countries with high informality and no unemployment insurance. Looking at the local labor market context, the analysis suggests that skills training programs work particularly well in more dynamic local contexts, where there is actual demand for the skills provided.

Suggested Citation

  • Kluve, Jochen & Ripani, Laura & Rosas-Shady, David, 2015. "Experimental Evidence on the Long Term Impacts of a Youth Training Program," IDB Publications (Working Papers) 7367, Inter-American Development Bank.
  • Handle: RePEc:idb:brikps:7367
    as

    Download full text from publisher

    File URL: https://publications.iadb.org/publications/english/document/Experimental-Evidence-on-the-Long-Term-Impacts-of-a-Youth-Training-Program.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alfonso Flores‐Lagunes & Arturo Gonzalez & Todd Neumann, 2010. "Learning But Not Earning? The Impact Of Job Corps Training On Hispanic Youth," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 651-667, July.
    2. repec:hal:pseose:halshs-00840901 is not listed on IDEAS
    3. Pablo Ibarraran & Laura Ripani & Bibiana Taboada & Juan Villa & Brigida Garcia, 2014. "Life skills, employability and training for disadvantaged youth: Evidence from a randomized evaluation design," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-24, December.
    4. Bernd Fitzenberger & Aderonke Osikominu & Robert Völter, 2008. "Get Training or Wait? Long-Run Employment Effects of Training Programs for the Unemployed in West Germany," Annals of Economics and Statistics, GENES, issue 91-92, pages 321-355.
    5. V. Joseph Hotz & Guido W. Imbens & Jacob A. Klerman, 2006. "Evaluating the Differential Effects of Alternative Welfare-to-Work Training Components: A Reanalysis of the California GAIN Program," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 521-566, July.
    6. Bruno Crépon & Esther Duflo & Marc Gurgand & Roland Rathelot & Philippe Zamora, 2013. "Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(2), pages 531-580.
    7. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
    8. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    9. David Card & Jochen Kluve & Andrea Weber, 2018. "What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 894-931.
    10. David Card & Pablo Ibarrarán & Ferdinando Regalia & David Rosas-Shady & Yuri Soares, 2011. "The Labor Market Impacts of Youth Training in the Dominican Republic," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 267-300.
    11. Adriana Kugler & Maurice Kugler & Juan Saavedra & Luis Omar Herrera Prada, 2015. "Long-Term Educational Consequences of Vocational Training in Colombia: Impacts on Young Trainees and Their Relatives," NBER Working Papers 21607, National Bureau of Economic Research, Inc.
    12. Michael Lechner & Ruth Miquel & Conny Wunsch, 2011. "Long‐Run Effects Of Public Sector Sponsored Training In West Germany," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 742-784, August.
    13. Howard S. Bloom & Larry L. Orr & Stephen H. Bell & George Cave & Fred Doolittle & Winston Lin & Johannes M. Bos, 1997. "The Benefits and Costs of JTPA Title II-A Programs: Key Findings from the National Job Training Partnership Act Study," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 549-576.
    14. Couch, Kenneth A, 1992. "New Evidence on the Long-Term Effects of Employment Training Programs," Journal of Labor Economics, University of Chicago Press, vol. 10(4), pages 380-388, October.
    15. Aderonke Osikominu, 2013. "Quick Job Entry or Long-Term Human Capital Development? The Dynamic Effects of Alternative Training Schemes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(1), pages 313-342.
    16. Sarojini Hirshleifer & David McKenzie & Rita Almeida & Cristobal Ridao‐Cano, 2016. "The Impact of Vocational Training for the Unemployed: Experimental Evidence from Turkey," Economic Journal, Royal Economic Society, vol. 126(597), pages 2115-2146, November.
    17. Peter Z. Schochet & John Burghardt & Sheena McConnell, 2008. "Does Job Corps Work? Impact Findings from the National Job Corps Study," American Economic Review, American Economic Association, vol. 98(5), pages 1864-1886, December.
    18. Fitzenberger, Bernd & Volter, Robert, 2007. "Long-run effects of training programs for the unemployed in East Germany," Labour Economics, Elsevier, vol. 14(4), pages 730-755, August.
    19. David H. Greenberg & Charles Michalopoulos & Philip K. Robins, 2003. "A Meta-Analysis of Government-Sponsored Training Programs," ILR Review, Cornell University, ILR School, vol. 57(1), pages 31-53, October.
    20. repec:mpr:mprres:6097 is not listed on IDEAS
    21. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
    22. Peter Z. Schochet & John Burghardt & Sheena McConnell, "undated". "Does Job Corps Work? Impact Findings from the National Job Corps Study," Mathematica Policy Research Reports 5067e4907eba4a4881f510080, Mathematica Policy Research.
    23. Adriana Kugler & Maurice Kugler & Juan E. Saavedra & Luis Omar Herrera-Prada, 2022. "Long-Term Educational Consequences of Vocational Training in Colombia: Impacts on Young Trainees and Their Relatives," Journal of Human Resources, University of Wisconsin Press, vol. 57(1), pages 178-216.
    24. Orazio Attanasio & Adriana Kugler & Costas Meghir, 2011. "Subsidizing Vocational Training for Disadvantaged Youth in Colombia: Evidence from a Randomized Trial," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 188-220, July.
    25. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection Discussion Papers and Notes 29142, The World Bank.
    26. María Laura Alzúa & Guillermo Cruces & Carolina Lopez, 2015. "Youth Training Programs Beyond Employment. Experimental Evidence from Argentina," CEDLAS, Working Papers 0177, CEDLAS, Universidad Nacional de La Plata.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Verónica Escudero & Jochen Kluve & Elva López Mourelo & Clemente Pignatti, 2019. "Active Labour Market Programmes in Latin America and the Caribbean: Evidence from a Meta-Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 55(12), pages 2644-2661, December.
    2. Evan Borkum & Kristen Velyvis & Arif Mamun & Malik Khan Mubeen & Anca Dumitrescu & Ananya Khan, "undated". "Evaluation of MCC's Investments in Community Skills Development Centers in Namibia: Final Report," Mathematica Policy Research Reports 45805b53759348d48f2d0d569, Mathematica Policy Research.
    3. Achyuta Adhvaryu & Namrata Kala & Anant Nyshadham, 2018. "The Skills to Pay the Bills: Returns to On-the-job Soft Skills Training," NBER Working Papers 24313, National Bureau of Economic Research, Inc.
    4. Caio Piza & André Portela Souza & Patrick M Emerson & Vivian Amorim, 2024. "The Short- and Longer-Term Effects of a Child Labor Ban," The World Bank Economic Review, World Bank, vol. 38(2), pages 351-370.
    5. Adriana Kugler & Maurice Kugler & Juan Saavedra & Luis Omar Herrera Prada, 2015. "Long-Term Educational Consequences of Vocational Training in Colombia: Impacts on Young Trainees and Their Relatives," NBER Working Papers 21607, National Bureau of Economic Research, Inc.
    6. Calero, Carla & Gonzalez Diez, Veronica & Soares, Yuri S.D. & Kluve, Jochen & Corseuil, Carlos Henrique, 2017. "Can arts-based interventions enhance labor market outcomes among youth? Evidence from a randomized trial in Rio de Janeiro," Labour Economics, Elsevier, vol. 45(C), pages 131-142.
    7. David McKenzie, 2017. "How Effective Are Active Labor Market Policies in Developing Countries? A Critical Review of Recent Evidence," The World Bank Research Observer, World Bank, vol. 32(2), pages 127-154.
    8. María laura Alzúa & Guillermo Cruces & Carolina Lopez, 2016. "Long-Run Effects Of Youth Training Programs: Experimental Evidence From Argentina," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1839-1859, October.
    9. Paloma Acevedo & Guillermo Cruces & Paul Gertler & Sebastian Martinez, 2017. "Living Up to Expectations: How Job Training Made Women Better Off and Men Worse Off," NBER Working Papers 23264, National Bureau of Economic Research, Inc.
    10. Camargo Juliana & Lima Lycia & Riva Flavio & Souza André Portela, 2021. "Technical Education, Non-cognitive Skills and Labor Market Outcomes: Experimental Evidence from Brazil," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-34, January.
    11. Carla Calero & Sandra V. Rozo, 2016. "The effects of youth training on risk behavior: the role of non-cognitive skills," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-27, December.
    12. repec:idb:brikps:7203 is not listed on IDEAS
    13. Chakravarty, Shubha & Lundberg, Mattias & Nikolov, Plamen & Zenker, Juliane, 2019. "Vocational training programs and youth labor market outcomes: Evidence from Nepal," Journal of Development Economics, Elsevier, vol. 136(C), pages 71-110.
    14. Chakravarty, Shubha & Lundberg, Mattias & Nikolov, Plamen & Zenker, Juliane, 2019. "Vocational training programs and youth labor market outcomes: Evidence from Nepal," Journal of Development Economics, Elsevier, vol. 136(C), pages 71-110.
    15. Adriana Kugler & Maurice Kugler & Juan E. Saavedra & Luis Omar Herrera-Prada, 2022. "Long-Term Educational Consequences of Vocational Training in Colombia: Impacts on Young Trainees and Their Relatives," Journal of Human Resources, University of Wisconsin Press, vol. 57(1), pages 178-216.
    16. Jorge Rodríguez & Fernando Saltiel & Sergio Urzúa, 2022. "Dynamic treatment effects of job training," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(2), pages 242-269, March.
    17. Orbeta, Aniceto Jr. C. & Paqueo, Vicente B., 2017. "Countering the Discriminatory Impact of Minimum Wages Against Disadvantaged Workers: Literature Review and Experimental Design Development," Discussion Papers DP 2017-55, Philippine Institute for Development Studies.
    18. Wendy Cunningham & Pablo Acosta & Noël Muller, 2016. "Minds and Behaviors at Work," World Bank Publications - Books, The World Bank Group, number 24659.
    19. Verónica Alaimo & Mariano Bosch & David S. Kaplan & Carmen Pagés & Laura Ripani, 2015. "Jobs for Growth," IDB Publications (Books), Inter-American Development Bank, number 90977, February.
    20. Rafael Novella & Laura Ripani, 2016. "Are you (not) expecting? The unforeseen benefits of job training on teenage pregnancy," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-18, December.
    21. Quintana, Rodrigo & Cravo, Tulio, 2019. "Demand-Driven Training and Job Turnover: The Effects of Brazil’s Pronatec-MDIC at Firm and Worker Level," IDB Publications (Working Papers) 9688, Inter-American Development Bank.
    22. Fox,Louise & Kaul,Upaasna, 2018. "The evidence is in : how should youth employment programs in low-income countries be designed ?," Policy Research Working Paper Series 8500, The World Bank.
    23. Kluve, Jochen., 2016. "A review of the effectiveness of active labour market programmes with a focus on Latin America and the Caribbean," ILO Working Papers 994901193402676, International Labour Organization.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paloma Acevedo & Guillermo Cruces & Paul Gertler & Sebastian Martinez, 2017. "Living Up to Expectations: How Job Training Made Women Better Off and Men Worse Off," NBER Working Papers 23264, National Bureau of Economic Research, Inc.
    2. Acevedo, Paloma & Cruces, Guillermo & Gertler, Paul & Martinez, Sebastian, 2020. "How vocational education made women better off but left men behind," Labour Economics, Elsevier, vol. 65(C).
    3. Bratti, Massimiliano & Ghirelli, Corinna & Havari, Enkelejda & Santangelo, Giulia, 2018. "Vocational Training for Unemployed Youth in Latvia: Evidence from a Regression Discontinuity Design," IZA Discussion Papers 11870, Institute of Labor Economics (IZA).
    4. Kluve, Jochen., 2016. "A review of the effectiveness of active labour market programmes with a focus on Latin America and the Caribbean," ILO Working Papers 994901193402676, International Labour Organization.
    5. María laura Alzúa & Guillermo Cruces & Carolina Lopez, 2016. "Long-Run Effects Of Youth Training Programs: Experimental Evidence From Argentina," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1839-1859, October.
    6. Agata Maida & Daniela Sonedda, 2019. "Getting out of the starting gate on the right foot: employment effects of investment in human capital," LABORatorio R. Revelli Working Papers Series 164, LABORatorio R. Revelli, Centre for Employment Studies.
    7. Bruno Crépon & Gerard J. van den Berg, 2016. "Active Labor Market Policies," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 521-546, October.
    8. Chakravarty, Shubha & Lundberg, Mattias & Nikolov, Plamen & Zenker, Juliane, 2019. "Vocational training programs and youth labor market outcomes: Evidence from Nepal," Journal of Development Economics, Elsevier, vol. 136(C), pages 71-110.
    9. Jochen Kluve, 2014. "Youth labor market interventions," IZA World of Labor, Institute of Labor Economics (IZA), pages 106-106, December.
    10. Beber, Bernd & Dworschak, Regina & Lakemann, Tabea & Lay, Jann & Priebe, Jan, 2021. "Skills Development and Training Interventions in Africa: Findings, Challenges, and Opportunities," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 247426.
    11. Calero, Carla & Gonzalez Diez, Veronica & Soares, Yuri S.D. & Kluve, Jochen & Corseuil, Carlos Henrique, 2017. "Can arts-based interventions enhance labor market outcomes among youth? Evidence from a randomized trial in Rio de Janeiro," Labour Economics, Elsevier, vol. 45(C), pages 131-142.
    12. Martin Biewen & Bernd Fitzenberger & Aderonke Osikominu & Marie Paul, 2014. "The Effectiveness of Public-Sponsored Training Revisited: The Importance of Data and Methodological Choices," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 837-897.
    13. Arif Mamun & Evan Borkum & Kristen Velyvis & Luke Heinkel & John Middleton, "undated". "The Millennium Challenge Corporation's Vocational Training Activity in Namibia: Evaluation Design Report," Mathematica Policy Research Reports 80d2989ca5c64313afe4bc4fd, Mathematica Policy Research.
    14. Fitzenberger, Bernd & Furdas, Marina & Sajons, Christoph, 2016. "End-of-year spending and the long-run employment effects of training programs for the unemployed," Freiburg Discussion Papers on Constitutional Economics 16/08, Walter Eucken Institut e.V..
    15. Thomas Kruppe & Julia Lang, 2018. "Labour market effects of retraining for the unemployed: the role of occupations," Applied Economics, Taylor & Francis Journals, vol. 50(14), pages 1578-1600, March.
    16. Eva m. Berger & Guenther Koenig & Henning Müller & Felix Schmidt & Daniel Schunk, 2017. "Self-Regulation Training and Job Search Effort: A Natural Field Experiment within an Active Labor Market Program," Working Papers 1712, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    17. Camargo Juliana & Lima Lycia & Riva Flavio & Souza André Portela, 2021. "Technical Education, Non-cognitive Skills and Labor Market Outcomes: Experimental Evidence from Brazil," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-34, January.
    18. Massimiliano Bratti & Corinna Ghirelli & Enkelejda Havari & Giulia Santangelo, 2022. "Vocational training for unemployed youth in Latvia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 677-717, April.
    19. Peter J. Glick & Crystal Huang & Nelly Mejia, 2015. "The Private Sector and Youth Skills and Employment Programs in Low and Middle-Income Countries," World Bank Publications - Reports 23260, The World Bank Group.
    20. Rüdiger Wapler & Daniel Werner & Katja Wolf, 2018. "Active labour market policies in Germany: do regional labour markets benefit?," Applied Economics, Taylor & Francis Journals, vol. 50(51), pages 5561-5578, November.

    More about this item

    Keywords

    long term impacts; Skills Development; Youth training; RCT; labor market outcomes; Youth & Children;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idb:brikps:7367. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Felipe Herrera Library (email available below). General contact details of provider: https://edirc.repec.org/data/iadbbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.