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Effects of skills training on employment and livelihood outcomes: A randomized controlled trial with young women in Ghana

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  • Frohnweiler, Sarah
  • Adongo, Charles A.
  • Beber, Bernd
  • Lakemann, Tabea
  • Priebe, Jan
  • Lay, Jann

Abstract

We use a randomized controlled trial to examine the short- and mid-term impacts of a best-practice training program on (non-)employment outcomes in Ghana. Overall the program did not affect core labor market outcomes at the extensive (employment) and intensive (hours of work, income) margin, but it (i) induced occupational sorting, with treated individuals more likely to work in their field of specialization, (ii) partially improved job quality (written contracts, medical benefits), and (iii) led to better outcomes on a variety of non-labor market indicators (mental health, delayed marriages, access to finance). We also explore policy stakeholders' expectations and perceptions of program success. We find that stakeholders (i) have overly optimistic prior beliefs about the program's impact on core outcomes and (ii) do not update their beliefs as we would expect from Bayes' rule when presented with information about the program's circumscribed effectiveness. We speculate that this result suggests an obstacle for adaptive programming in development cooperation and could help explain the persistence of some suboptimal labor market interventions.

Suggested Citation

  • Frohnweiler, Sarah & Adongo, Charles A. & Beber, Bernd & Lakemann, Tabea & Priebe, Jan & Lay, Jann, 2024. "Effects of skills training on employment and livelihood outcomes: A randomized controlled trial with young women in Ghana," Ruhr Economic Papers 1095, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:302181
    DOI: 10.4419/96973272
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    More about this item

    Keywords

    Vocational training; labor markets; skills; youth; women; impact evaluation; Ghana;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • 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
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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