Reducing Job Informality and Youth Unemployment in Argentina: A Quasi-Experimental Evaluation of a Sector-Based Skills-Training Program for Young Unemployed People
Open AccessThis thesis presented an evaluation of Ce.Fo.Se.’s sector-based skills training program targeted to young unemployed individuals from 2012 to 2016. I used several methodologies to conduct this program evaluation, including a before-and-after analysis, a difference-in-difference econometric model, and semi-structured interviews. From the difference-in-difference analysis, my strongest methodology, I conclude that individuals who graduate from the program are 20.1 percentage points more likely to be formally employed than the control group. I also found that the training had a significantly higher impact for graduates younger to 24 years old: their increased probability of getting a formal job was 6.7 percentage points higher than those between the ages of 24 and 27 and 18.6 percentage points higher than older individuals. These results have strong policy implications since the program can help equip young adults with relevant skills, increasing their employability, and help reduce the formal employment gap among youth and adults. Furthermore, the thesis explores three additional questions: whether the intensity and skills of the training matters; whether unemployment is a lack of skills or a matching problem; and, whether there are any differential effects depending on the financing mechanism –grant vs. fiscal credit. Finally, I carried out a cost-benefit analysis to calculate the total months it could take to recover investing in these types of programs. Using the difference-in-difference estimations and projecting three different scenarios, the repayment period can be between 5 and 30 months from trainees’ graduation, indicating a very high return for the government and the individuals trained.
- All rights reserved
Notice to Authors
If you are the author of this work and you have any questions about the information on this page, please use the Contact form to get in touch with us.