Youth training programs beyond employment. Evidence from a randomized controlled trial

Youth unemployment is a pervasive phenomenon in Latin America and the Caribbean. Governments have widely used training programs in order to mitigate the problem. This paper documents the effects of a training program designed for low income youths, which comprises of vocational training, life skills and work experience. Results show large gains in employment, with effects that remain stable for more than two years after the intervention. The program also shows substantial effects on access to credit. Program participants exhibit a higher probability of having requested formal consumer credit, and higher probability of having bank debts in good standing. The evidence suggest that our results are driven mainly by men and younger participants who have higher gains in terms of outcomes, contrary to previous evidence from Latin America.


Alzúa, M. l., Cruces, G. and Lopez, C. (2016), Long-run Effects of Youth Training Programs: Experimental Evidence from ArgentinaEconomic Inquiry. doi: 10.1111/ecin.12348

 

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