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Making intense skills training work at scale: Evidence on business and labor market outcomes in Tanzania

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  • Calderone, Margherita
  • Fiala, Nathan
  • Melyoki, Lemayon Lemilia
  • Schoofs, Annekathrin
  • Steinacher, Rachel

Abstract

Improving youth labor market outcomes is a primary concern for countries around the world. We conduct a randomized controlled trial in Tanzania on an intense gender-sensitive skills training program that worked with over 53,000 youth in the region. After two years, we find the program increased women's economic outcomes, including income, savings, as well as engagement in the labor market, and quality of jobs for all participants. We find no significant effects on economic outcomes for male participants. We also find significant effects on hard skills for both women and men and soft skills for women in terms of self-awareness and confidence. In a cross experiment with micro-grants, we find smaller but economically significant effects on all outcomes for both genders. From a monetary perspective the training program is very cost-effective, paying for itself within 32 months when targeting both women and men.

Suggested Citation

  • Calderone, Margherita & Fiala, Nathan & Melyoki, Lemayon Lemilia & Schoofs, Annekathrin & Steinacher, Rachel, 2022. "Making intense skills training work at scale: Evidence on business and labor market outcomes in Tanzania," Ruhr Economic Papers 950, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:950
    DOI: 10.4419/96973113
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    More about this item

    Keywords

    Business training; soft skills; youth unemployment; microenterprises; Tanzania;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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