Vocational Training for Unemployed Youth in Latvia: Evidence from a Regression Discontinuity Design

39 Pages Posted: 29 Oct 2018

See all articles by Massimiliano Bratti

Massimiliano Bratti

Università degli Studi di Milano - DEAS; Institute for the Study of Labor (IZA)

Corinna Ghirelli

Bank of Spain

Enkelejda Havari

European Commission - Joint Research Centre; affiliation not provided to SSRN

Giulia Santangelo

Joint Research Center of the European Commission

Abstract

This paper evaluates the impact of a vocational training programme on the labour market outcomes of unemployed youth in Latvia. The programme is part of the Youth Guarantee scheme for the period 2014-2020, the largest action launched by the European Union to reduce youth unemployment rate and to support young people aged between 15 and 29 who are not in education, employment or training (NEETs). To estimate the causal effect of participating in the programme on the employment outcomes, we exploit a rule that gives priority for participation to unemployed people under the age of 25 using a fuzzy Regression Discontinuity Design setup.The estimated effects of the programme on the probability of being employed and monthly income up to 3.5 years after registering in the programme are positive but not statistically significant, although we find a strong positive effect of the priority rule on programme participation. This is the first evidence on the impact of a programme within the current Youth Guarantee scheme in Europe and our findings are in line with those from the literature on the evaluation of active labour market policies targeting youth.

Keywords: youth guarantee, Latvia, vocational training, employment, policy evaluation, administrative data, regression discontinuity design

JEL Classification: J01, J08, J18, J24

Suggested Citation

Bratti, Massimiliano and Ghirelli, Corinna and Havari, Enkelejda and Havari, Enkelejda and Santangelo, Giulia, Vocational Training for Unemployed Youth in Latvia: Evidence from a Regression Discontinuity Design. IZA Discussion Paper No. 11870, Available at SSRN: https://ssrn.com/abstract=3273709 or http://dx.doi.org/10.2139/ssrn.3273709

Massimiliano Bratti (Contact Author)

Università degli Studi di Milano - DEAS ( email )

Via Conservatorio, 7
I-20122 Milano
Italy

Institute for the Study of Labor (IZA)

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

Corinna Ghirelli

Bank of Spain ( email )

Calle Alcala, 48
Madrid, 28014
Spain

Enkelejda Havari

European Commission - Joint Research Centre ( email )

Via Enrico Fermi
Ispra, Varese 21027
Italy

HOME PAGE: http://https://sites.google.com/site/enkehavari/

affiliation not provided to SSRN

Giulia Santangelo

Joint Research Center of the European Commission

Via E. Fermi 2749
Ispra (VA), I-21027
Italy

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