Training the Disadvantaged Youth and Labour Market Outcomes: Evidence From Bangladesh

This paper estimates the effects of a youth training program in Bangladesh on labour market outcomes. The program, organized as a randomized controlled trial, provides on-the-job and classroom training to disadvantaged unemployed youth. ITT results show that six months after the intervention, on-the-job training increases labour market participation by 16 percentage points and earnings by 23%. The effect on employment declines in the long run, after 22 months, but the effect on earnings is sustained as the program induces a shift from casual work to wage employment. Adding classroom training over on-the-job training has no short-term effect on aggregate employment and earnings but it has a more sustained effect. This paper extends the existing set of results by studying a training program in Bangladesh, a country with a high rate of youth unemployment.

Author: Das, Narayan C
Type: Journal Article
Year: 2020