Subsidizing Vocational Training for Disadvantaged Youth in Colombia: Evidence from a Randomized Trial
American Economic Journal: Applied Economics, Vol. 3, No. 3, July 2011
Posted: 10 Jul 2011
Date Written: July, 10 2011
Abstract
This paper evaluates the impact of a randomized training program for disadvantaged youth introduced in Colombia in 2005. This randomized trial offers a unique opportunity to examine the impact of training in a middle income country. We use originally collected data on individuals randomly offered and not offered training. The program raises earnings and employment for women. Women offered training earn 19.6 percent more and have a 0.068 higher probability of paid employment than those not offered training, mainly in formal-sector jobs. Cost-benefit analysis of these results suggests that the program generates much larger net gains than those found in developed countries.
Keywords: Vocational Training, Randomized Trials
JEL Classification: I28, J13, J24, O15
Suggested Citation: Suggested Citation
