Project Code: PIERI-12375

Title: Demand-Driven Youth Training Programs: Experimental Evidence from Mongolia.

Authors: Maria Laura Alzúa, Soyolmaa Batbekh, Altantsetseg Batchuluun, Bayarmaa Dalkhjavd, José Galdo.

Description: Because of its high incidence and potential threat to social cohesion, youth unemployment is a global concern. This study uses a randomized controlled trial to analyze the effectiveness of a demand-driven vocational training program for disadvantaged youth in Mongolia. Mongolia, a transitional country whose economic structure shifted from a communist, centrally planned economy to a free-market economy over a relatively short period, offers anew setting in which to test the effectiveness of standard active labor market policies. This study reports positive and statistically significant short-term effects of vocational training on monthly earnings, skills matching, and self-employment. Substantial heterogeneity emerges as relatively older, richer, and better-educated individuals drive these positive effects. A second intervention that randomly assigns participants to receive repetitive weekly newsletters with information on market returns to vocational training shows positive impacts on the length of exposure to and successful completion of the program. These positive effects, however, are only observed.

Data collection date (Month(s)/Year): August-December 2013, June-December 2014, June-December 2015

Publication date: May 2019

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