Training Quality and Earnings: The Effects of Competition on the Provision of Public-Sponsored Training Programs

Posted: 25 Apr 2011

See all articles by Alberto Chong

Alberto Chong

University of Ottawa

José Galdo

Syracuse University - Department of Economics; IZA Bonn

Date Written: June 2006

Abstract

This paper estimates the effect of training quality on labor-market earnings using a Peruvian non-experimental training program, PROJOVEN, which targets disadvantaged youths aged 16 to 24 years. The identification of causal effects is possible because of two attractive features in the data. First, the selection of training courses is based on public bidding processes that assign standardized scores to multiple proxies for quality. Second, the program`s evaluation framework allows for the identification and comparison of individuals in the treatment and comparison groups six, 12, and 18 months after the program. Using difference-in-differences kernel matching methods, we find that individuals attending high-quality training courses have higher average and marginal treatment impacts. The external validity of our estimates was assessed by using five different calls of this program over a nine-year period.

Suggested Citation

Chong, Alberto and Galdo, José, Training Quality and Earnings: The Effects of Competition on the Provision of Public-Sponsored Training Programs (June 2006). IDB Working Paper No. 462, Available at SSRN: https://ssrn.com/abstract=1820035

Alberto Chong (Contact Author)

University of Ottawa ( email )

2292 Edwin Crescent
Ottawa, Ontario K2C 1H7
Canada

José Galdo

Syracuse University - Department of Economics ( email )

Syracuse, NY 13244-1020
United States

IZA Bonn

P.O. Box 7240
Bonn, D-53072
Germany

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