Subsidized Vocational Job Training
RCTReview
Low-skilled workers lack formal technical qualifications and vocational competencies, confining them to low-productivity, informal labor market positions without social security.
Picture this
Think of entering a professional sports league without ever practicing the game. Vocational training acts as an intensive pre-season training camp that teaches specific skills, giving workers the playbook and technical conditioning required to qualify for a spot on a formal team.
What the evidence says
Vocational job training programs significantly increased participants' probability of securing formal employment and improved overall employment quality compared to non-participants.
- Who was studied
- Young and unemployed workers in Brazil (Camargo et al., 2021) and Peru (Diaz and Rosas, 2016).
- How
- Randomized Controlled Trial (RCT) and quasi-experimental labor market impact evaluations.
What to do
Implement subsidized technical and vocational training curricula aligned directly with high-demand formal sector occupations.
From the source
"In Brazil and Peru, training programs increased the likelihood of their participants working formally, which indicates that these programs can create a pathway for increasing the quality of employment of their participants"
JOI_Brazil_Evidence_in_Labor_Market_Policies_and_Implications_for.pdf