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Subsidizing Vocational Training for Disadvantaged Youth in Colombia: Evidence from a Randomized Trial
Orazio Attanasio, Adriana Kugler, Costas Meghir
American Economic Journal: Applied Economics. Jul 2011, Vol. 3, No. 3: Pages 188-220

Subsidizing Vocational Training for Disadvantaged Youth in Colombia: Evidence from a Randomized Trial

Orazio Attanasio, 1

1Department of Economics, University College London, Gower Street, London WC1E 6BT, United Kingdom and National Bureau of Economic Research (NBER).

Adriana Kugler, 2

2Georgetown Public Policy Institute, Georgetown University, Old North Suite 311, 37th and O Streets, N.W., Washington, DC 20057 and NBER.

Costas Meghir3

3Department of Economics, Yale University, Box 208264, New Haven, CT 06520-8264 and University College London.

Abstract

This paper evaluates the impact of a randomized training program for disadvantaged youth introduced in Colombia in 2005. This randomized trial offers a unique opportunity to examine the impact of training in a middle income country. We use originally collected data on individuals randomly offered and not offered training. The program raises earnings and employment for women. Women offered training earn 19.6 percent more and have a 0.068 higher probability of paid employment than those not offered training, mainly in formal-sector jobs. Cost-benefit analysis of these results suggests that the program generates much larger net gains than those found in developed countries. (JEL I28, J13, J24, O15)