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

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.

Revenga, Riboud, and Tan (1994)UrbanCox proportional hazards model estimated on participants and matched nonparticipants (based on propensity score).Short-term vocational education training.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.http://www.jstor.org/discover/10.2307/3989963?uid=3739256&sid=21102128893133Youth and adults. Offered to 250,000 registered unemployed people age 20-55, selected on basis of eligibility index.