DP10859 Long-Term Direct and Spillover Effects of Job Training: Experimental Evidence from Colombia

Author(s): Luis Omar Herrera Prada, Adriana D. Kugler, Maurice Kugler, Juan Esteban Saavedra
Publication Date: October 2015
Keyword(s): education complementarities, formal employment, long-term effects, randomized experiments, spillover effects, vocational training, youth employment
JEL(s): C9, I2, J24, J68, O2
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=10859

We use administrative data to examine medium and long-term formal education and labor market impacts among participants and family members of a randomized vocational training program for disadvantaged youth in Colombia. In the Colombian program, vocational training and formal education are complementary investments: relative to non-participants, randomly selected participants are more likely to complete secondary school and to attend and persist in tertiary education eight years after random assignment. Complementarity is strongest among applicants with high baseline educational attainment. Training also has educational spillover effects on participants’ family members, who are more likely to enroll in tertiary education. Between three and eight years after randomization, participants are more likely to enter and remain in formal employment, and have formal sector earnings that are at least 11 percent higher than those of non-participants.