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Training for the Urban Unemployed: A Reevaluation of Mexico's Training Program, Probecat

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  • Wodon, Quentin
  • Minowa, Mari

Abstract

For many years the government of Mexico has implemented a large training program for the unemployed. The program has been evaluated twice before with similar methodologies. These two evaluations yielded encouraging results in that the program apparently reduces unemployment and increases earnings. This article suggests that both evaluations may suffer from inappropriate controls for the endogeneity of program participation. Using the availability of the program at the state level as a determinant of individual participation, the article uses the data of the second evaluation to indicate that Probecat does not decrease unemployment, nor does it increase wages.

Suggested Citation

  • Wodon, Quentin & Minowa, Mari, 2001. "Training for the Urban Unemployed: A Reevaluation of Mexico's Training Program, Probecat," MPRA Paper 12310, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:12310
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    File URL: https://mpra.ub.uni-muenchen.de/12310/1/MPRA_paper_12310.pdf
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    References listed on IDEAS

    as
    1. Paul Foley, 1992. "Local Economic Policy and Job Creation: A Review of Evaluation Studies," Urban Studies, Urban Studies Journal Limited, vol. 29(3-4), pages 557-598, May.
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    3. Ravallion, Martin & Wodon, Quentin, 2000. "Does Child Labour Displace Schooling? Evidence on Behavioural Responses to an Enrollment Subsidy," Economic Journal, Royal Economic Society, vol. 110(462), pages 158-175, March.
    4. Revenga, Ana & Riboud, Michelle & Tan, Hong, 1994. "The Impact of Mexico's Retraining Program on Employment and Wages," The World Bank Economic Review, World Bank, vol. 8(2), pages 247-277, May.
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    Citations

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    Cited by:

    1. Bouillon, César P. & Tejerina, Luis, 2006. "Do We Know What Works?: A Systematic Review of Impact Evaluations of Social Programs in Latin America and the Caribbean. Latest version," IDB Publications (Working Papers) 4297, Inter-American Development Bank.
    2. Quentin Wodon & Rodrigo Castro & Kihoon Lee, 2001. "Poverty in Latin America: Trends (1986-1998) and Determinants," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 38(114), pages 127-153.
    3. Inter-American Development Bank (IDB), 2005. "The Millennium Development Goals in Latin America and the Caribbean: Progress, Priorities and IDB Support for their Implementation," IDB Publications (Books), Inter-American Development Bank, number 53698, February.
    4. Martin Rama, 2002. "Globalization and Workers in Developing Countries," Economics Study Area Working Papers 41, East-West Center, Economics Study Area.
    5. World Bank, 2009. "Mexico - Improving Productivity for the Urban Poor," World Bank Publications - Reports 3047, The World Bank Group.
    6. César P. Bouillon & Luis Tejerina, 2006. "Do We Know What Works?: A Systematic Review of Impact Evaluations of Social Programs in Latin America and the Caribbean," IDB Publications (Working Papers) 80443, Inter-American Development Bank.
    7. Maloney, William F., 2001. "Evaluating emergency programs," Policy Research Working Paper Series 2728, The World Bank.
    8. Castro-Fernandez, Rodriguo & Clert, Carine & Wodon, Quentin, 2002. "Government Programs for the Insertion of Youth and Women in Chile's Labor Market: A Discussion," MPRA Paper 15415, University Library of Munich, Germany.
    9. Wodon, Quentin & Velez, Eduardo, 2001. "Poverty and Inequality," MPRA Paper 12307, University Library of Munich, Germany.
    10. Wodon, Quentin, 2001. "Government Programs and Poverty," MPRA Paper 12308, University Library of Munich, Germany.

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    More about this item

    Keywords

    Mexico; probecat; employment programs;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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