Does the Quality of Training Programs Matter? Evidence from Bidding Processes Data

40 Pages Posted: 31 Jul 2006

See all articles by Alberto Chong

Alberto Chong

University of Ottawa

José Galdo

Syracuse University - Department of Economics; IZA Bonn

Date Written: July 2006


We estimate the effect of training quality on earnings using a Peruvian program, which targets disadvantaged youths. The identification of causal effects is possible because of two attractive features in the data. First, selection of training courses is based on public bidding processes that assign standardized scores to multiple proxies for quality. Second, the evaluation framework allows for the identification and comparison of individuals in treatment and comparison groups six, 12, and 18 months after the program. Using difference-indifferences kernel matching methods, we find that individuals attending high-quality training courses have higher average and marginal treatment impacts. External validity was assessed by using five different calls over a nine-year period.

Keywords: training, quality, earnings, bidding, matching methods

JEL Classification: I38, H43, C13, C14

Suggested Citation

Chong, Alberto and Galdo, José, Does the Quality of Training Programs Matter? Evidence from Bidding Processes Data (July 2006). IZA Discussion Paper No. 2202, Available at SSRN: or

Alberto Chong

University of Ottawa ( email )

2292 Edwin Crescent
Ottawa, Ontario K2C 1H7

José Galdo (Contact Author)

Syracuse University - Department of Economics ( email )

Syracuse, NY 13244-1020
United States

IZA Bonn

P.O. Box 7240
Bonn, D-53072

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