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

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)

Attanasio et al (2011)Rural.RCT.One treatment group was offered a group lending product, while the other was offered an individual lending product. Randomization was done at the village level.Significant increase in business ownership (10%), food consumption (17%) and asset ownership among those offered a group lending product.No effect among those offered an individual lending product. No significant effect on household income. No difference in repayment rates between the two treatment groups.4,353 individuals.