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.

  • Training Disadvantaged Youth in Latin America: Evidence From a Randomized Trial

    Attanasio, Kugler and Meghir (2008)

    Original abstract:

    Youth unemployment in Latin America is exceptionally high, as much as 50% among the poor. Vocational training may be the best chance to help unemployed young people at the bottom of the income distribution. This paper evaluates the impact of a randomized training program for disadvantaged youth introduced in Colombia in 2005 on the employment and earnings of trainees. This is one of a couple of randomized training trials conducted in developing countries and, thus, offers a unique opportunity to examine the causal impact of training in a developing country context. We use originally collected data on individuals randomly offered and not offered training. We find that the program raises earnings and employment for both men and women, with larger effects on women. Women offered training earn about 18% more than those not offered training, while men offered training earn about 8% more than men not offered training. Much of the earnings increases for both men and women are related to increased employment in formal sector jobs following training. The benefits of training are greater when individuals spend more time doing on-the-job training, while hours of training in the classroom have no impact on the returns to training. Cost-benefit analysis of these results suggests that the program generates a large net gain, especially for women.

    Intervention settings: Urban

    Intervention description: Three months of classroom training followed by three months of OJT in the form of unpaid internship, with 1009 companies participating.

    Methodology: RCT

    Sample: Unemployed youth from families in the two lowest deciles of the income distribution, from 2001-2005.

    Findings: Increased earnings for men and women, with the largest effects for women. Earnings for women increased on average 18%. Men and women who were offered training (intent-to-treat estimates) were more likely to be employed and to have jobs that offered benefits and to have a formal wage contract. Benefits of OJT found to be higher than that of classroom training.

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  • How Can Job Opportunities for Young People in Latin America be Improved?

    Gonzalez-Velosa et al (2012)

    Original abstract:

    Job training programs for vulnerable youth are the main response of Latin American governments to address the problem of inadequate employment opportunities for young people. Despite its importance, knowledge about these programs is scarce. This study contributes to filling this gap in the literature by presenting new evidence on the effectiveness of six of these programs operating or that were implemented in Colombia, Honduras, Mexico, Panama, Peru and Dominican Republic. This analysis uses the results of impact evaluations of these programs and the results of qualitative surveys of young participants and employers, and in-depth interviews to training centers, employers and policy makers. The main results confirm the limited evidence available, namely, that these programs have little impact on the probability of getting a job (although there is a high heterogeneity in these impacts), but a significant impact on job quality. From this analysis, we propose a research agenda to improve knowledge on the functioning and impact of these programs, and provide a series of recommendations to improve the design and increase the effectiveness of youth training programs.

    Intervention settings: Mixed

    Intervention description: Vocational classroom and on-the-job training and job placement.

    Methodology: RCT

    Sample: Youth and adults. Offered to men and women 16-29 years old from lower socioeconomic strata, and those meeting educational and skill requirements of participating firms.

    Findings: 7%-12% increase in employment for women only. Three to seven hours per week increase in weekly hours worked for women only. Especially successful in countries with established private vocational training industry, significant wage employment and high female mobility.

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  • Study of Self-employed Women's Association (SEWA) program in India

    Baldawi

    Intervention settings: Rural

    Intervention description: Program provided health care, child care, banking and insurance services.

    Methodology: Cross-sectional comparisons of participants and non-participants, and participants' reports on how program changed their lives.

    Sample: Mothers and children who attended centers in two districts 10 years ago.

    Findings: 42%-53% of mothers report increased productivity, employment days and family savings.

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  • The Impact of Access to Free Childcare on Women's Labor Market Outcomes: Evidence from a Randomized Trial in Low-Income Neighborhoods of Rio de Janeiro

    Barros et al (2011)

    Intervention settings: Urban.

    Intervention description: Publicly provided child care.

    Methodology: Program assignment originally based on a lottery, with lottery winners getting program and losers being put on waiting list.

    Sample: Poor mothers.

    Findings: Increase in use of care (51% to 94%), mothers' employment (36%-46%) - especially among mothers not working six months before lottery (97%).

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  • Evaluating Preschool Programs When Length of Exposure to the Program Varies: A Nonparametric Approach

    Behrman, Cheng, and Todd (2004)

    Original abstract:

    Nonexperimental data are used to evaluate impacts of a Bolivian preschool program on cognitive, psychosocial, and anthropometric outcomes. Impacts are shown to be highly dependent on age and exposure duration. To minimize the effect of distributional assumptions, program impacts are estimated as nonparametric functions of age and duration. A generalized matching estimator is developed and used to control for nonrandom selectivity into the program and into exposure durations. Comparisons with three groups-children in the feeder area not in the program, children in the program for less than or equal to 1 month, and children living in similar areas without the program-indicate that estimates are robust for significant positive effects of the program on cognitive and psychosocial outcomes with greater than or equal to 7 months' exposure, although the age patterns of effects differ slightly by comparison group. Copyright 2004 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

    Intervention settings: Urban.

    Intervention description: Training and unemployment benefits, including a public service component, where local government and other eligible organizations propose public projects and hire ALMP participants to work on them.

    Methodology: Estimation as nonparametric functions of age and duration.

    Sample: Adults. Registered unemployed, having income less than 50% of minimum wage, employed 6 months of last 12 or recent graduate. 45% of sample had university degree.

    Findings: Statistically significant effects on the likelihood of employment, the likelihood of being employed at least once and on wage levels. Middle aged had biggest impacts. Retraining increases the probability of employment and decreases the wage for females. Program not beneficial for highly educated.

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