Wage Employment


Original abstracts from the papers in the database are provided below. All abstracts are drawn directly from the papers referenced. Links to access the papers are provided, although
the papers may also be available from other web sources. By providing links to other sites, the United Nations Foundation and ExxonMobil Foundation do not guarantee, approve, or endorse the information or products available on these sites.

  • The Impact of Training Policies in Latin America and the Caribbean: The Case of Programa Joven

    Aedo and Nunez (2004)

    Original abstract:

    This research evaluates the "Programa Joven", a training program conducted by the Ministerio del Trabajo of Argentina. We adapt and apply a non-experimental evaluation methodology to answer the following questions: Does "Programa Joven" increase the labor income of the trainees? Does "Programa Joven" increase the probability of being employed? And (3) what is the rate of return to dollars spent on the "Programa Joven"? We used Propensity Scores Matching Estimators as our basic methodology to obtain a measure of the impact of the training program. Our choice of this methodological approach was based upon both the theoretical developments in the area of Program Evaluation and the availability of relevant information. We used three different set of data to estimate the Propensity Scores which allowed us to analyze the question on how sensitive Program impact estimates are to different propensity score specifications? This question has not been addressed by the previous literature. Our results indicate first, that Program impact on earnings were statistically significant for young males and adult females. This result was not sensitive to the number of nearest neighbors. Second, the estimated Program impact on employment was statistically significant for adult females only. Again the result was not sensitive to the number of nearest neighbors. Third, impact estimates on earnings and employment for the groups with statistically significant results were not sensitive to the different sources of information used to estimate the propensity scores. This was a surprising result as we expected to observe greater variability in the impact results across different propensity score specifications. Fourth, the cost-benefit exercise conducted suggest that we required at least 9 years of duration of the earnings impact for the Program to have a positive net present value for the groups with statistically significant results.

    Intervention settings: Rural and urban (across 11 regions)

    Intervention description: Provides an average of 200 hours of training over 14-20 weeks (classroom followed by internship), a monetary subsidy for females with children, transportation expenses, medical checkups, books, materials and work clothing.

    Methodology: Cross-sectional propensity score matching using program beneficiaries and eligible non-participants.

    Sample: Young people from poor households with low education levels and little work experience, who were unemployed or inactive.

    Findings: Positive employment impacts for women of 6% at 12 months, and 15% at 18 months. Beneficiary women generate 93% more labor income than their control counterparts. Decrease in measures of occupational segregation. Negative employment impacts for men.

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  • Gender and Racial Discrimination in Hiring: A Pseudo Audit Study for Three Selected Occupations in Metropolitan Lima

    Nopo, Robels, and Saavedra (2007)

    Original abstract:

    In this paper, we adapt the audit studies methodology to analyze gender and racial differences in hiring for a particular segment of the market of three selected occupations in Metropolitan Lima: salespersons, secretaries and (accounting and administrative) assistants. The adapted pseudo-audit study methodology allows us to reduce the room for existence of statistical discrimination. The results suggest the existence of no significant differences in hiring rates for different gender-race groups but some systematic (and significant) differences in the aimed wages of the individuals in their job search processes.

    Intervention settings: Urban

    Intervention description: Provides classroom training and internships lasting three months. Trainees receive stipend during training period, with mothers of young children receiving double stipend. Focus on training females for traditionally male occupations.

    Methodology: Two-stage matching procedure that first selects for each treated a matched control on the basis of similarity in preprogram hourly wages

    Sample: Technicians and professionals from middle and lower classes in Lima; 80% have an above high-school education.

    Findings: Positive employment impacts for women of 6% at 12 months and 15% at 18 months. Negative impacts for men. After 18 months, beneficiary females generate 93% more labor income than their control counterparts. Decrease in measures of occupational segregation.

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  • Medium and Long Run Effects of Nutrition and Child Care: Evaluation of a Community Nursery Programme in Rural Colombia

    Attanasio and Vera-Hernandez (2004)

    Original abstract:

    In this paper we evaluate the effect of a large nutrition programme in rural Colombia on children nutritional status, school achievement and female labour supply. We find that the programme has very large and positive impacts. Dealing with the endogeneity of treatment is crucial, as the poorest children tend to select into the programme. Methods like Propensity Score Matching would even yield negative estimates of the impact of the program. Our results are robust to the use of instruments that do not depend on individual household choices. We also validate our evaluation strategy by considering the effect of the program on pre-intervention variables. Further, we explore the heterogeneity of the impact of the programme. Children from the poorest backgrounds are the ones that benefit the most.

    Intervention settings: Rural.

    Intervention description: Community nurseries where poor children receive food (purchased by government) and chid care from one of the mothers in the community.

    Methodology: Instrumental variables using distance to nearest center as an instrument.

    Sample: Poor households, based on an eligibility score.

    Findings: Increase in probability of women's employment (0.12 to 0.37) and hours worked (by 75/month.) Positive impact on children's height and grades.

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  • The Impact of Mexico's Retraining Program on Employment and Wages

    Revenga, Riboud, and Tan (1994)

    Original abstract:

    This paper analyzes the impact and effectiveness of the Mexican Labor Retraining Program for Unemployed and Displaced Workers (PROBECAT). The strategy followed is to compare the post- training labor market experiences of trainees with those of a comparison group--a matched sample of unemployed individuals who were eligible for, but did not participate in, the PROBECAT program. The results of this exercise suggest that participation in PROBECAT reduced the mean duration of unemployment for both male and female trainees, and increased the monthly earnings of males, but not offemales. Theresultsalsoindicatethatthepost-training earnings effect varied systematically by level of schooling attainment, with the largest earnings increases (of about 28 to 37 percent) found for males with 6 to 12 years of education.

    Intervention settings: Urban

    Intervention description: Short-term vocational education training.

    Methodology: Cox proportional hazards model estimated on participants and matched nonparticipants (based on propensity score).

    Sample: Youth and adults. Offered to 250,000 registered unemployed people age 20-55, selected on basis of eligibility index.

    Findings: Program trainees found jobs more quickly. Impacts mainly for trainees older than 25 with work experience. Cost effective for women over 25, but not for younger women.

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  • Subsidizing Vocational Training for Disadvantaged Youth in Developing Countries: Evidence from a Randomized Trial

    Attanasio et al (2011)

    Original 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 developing countries. We use originally collected data on individuals randomly offered and not offered training. The program raises earnings and employment, especially for women. Women offered training earn 18% more and have a 0.05 higher probability of 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.

    Intervention settings: Urban

    Intervention description: Three months in-classroom training and three months of on-the-job training. Courses provided vocational skills in a diverse number of occupations (including taxi and bus drivers, office assistants, call center operators, medical assistants, textile operators, carpentry assistants, etc.) On-the-job training was provided by legally registered (formal sector) companies, via unpaid internships. Trainees received a daily stipend of $2.20 ($3 for women with children under 7).

    Methodology: RCT

    Sample: Unemployed young people placed in lowest two deciles of income distribution.

    Findings: 11% increase in likelihood to be in paid employment. Wage and salary earnings increase by 18%. Controlling for training institution fixed effects and pre-treatment characteristics: Female trainees' probability of paid employment 19-21 months after program increased by 5% relative to the control group. Women worked an average of 1.1 more days/month and 2.5 more hours/week than women in the control group and earned 18% more than women who didn't receive the training. Impact on total labor income not reported.

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