This experimental study in Uganda (Wakiso area, Jinja town and in Iganga) seeks to investigate how barriers in access to information affect search efforts, labour outcomes and aspirations of young jobseekers taking their first step in the job market, and how can these barriers be effectively resolved or reduced. Five vocational training institutes (VTIs) were chosen for this experiment, all of which had previously collaborated with BRAC. The study sample consists of year one students enrolled in these five VTIs.
Researchers: Livia Alfonsi; Mary Namubiru
Partners: BRAC-CEGA Learning Collaborative
Timeline: 2019-2022
Status: Completed
Contact: Mary Namubiru; mary.namubiru@brac.net
Context
Jobseekers in developing contexts face a number of search barriers to quality employment. The most recurring ones in the literature range from liquidity constraints for travel costs to the high opportunity cost of search-time due to job availability in the informal sector. In addition to these, young job seekers often do not know how or where to search for jobs, might not understand their skills in relation to what employers want and are likely to have distorted expectations of wage levels and working conditions. Importantly, these barriers are magnified right in the most vulnerable phase of a career – the transition into the labour market. This study seeks to investigate how barriers in access to information affect search efforts, labour outcomes and aspirations of young jobseekers taking their first step in the job market, and how can they be effectively resolved or reduced.
This study is relevant to SDG 4 (Quality Education), particularly to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
Research Question
How can career-coaching and job search assistance from “the future you” help influence trainees’ expectations and labour market trajectories?
Methodology
This randomised control trial (RCT) design is measuring the impact of career coaching. The sample for the study consists of year-one students from five VTIs (two in Wakiso area, two in Jinja town and one in Iganga), who will be followed from the beginning of their training until their graduation. The overall sample of 1,180 students is made of 80 BRAC trainees and 1,100 non-BRAC trainees enrolled in the five VTIs.
Findings and Recommendations
The Meet Your Future (MYF) program had substantial positive labour market effects on the students who received mentoring. Their participation in the labour market was higher, they were more likely to make use of the skills they gained at the VTI, and their wages were higher one year later. During the program, 91% of the participants spoke with the designated mentor at least once. After twelve months, mentors and mentees had interacted 7.8 times and expanded their use of texting. Based on enumerator observations and self-reported student surveys, students appeared highly satisfied with the mentoring they received.
Mentored students lowered their reservation wage (i.e., the minimum payment they self-reported to be willing to accept from an employer) by 32%. Additionally, they were 27% less likely to reject a position while seeking employment. Relatedly, their initial unemployment periods between graduation and finding their first jobs were 30% briefer than unmentored students and more likely to be in the sector related to their vocational program. Three months after mentored students completed their VTI training, researchers found that their labour market participation was 27% higher than students who did not receive mentoring (including both paid employment and unpaid apprenticeships or traineeships in that category). In addition, students who received mentoring had more stable relationships with employers, with their first employment lasting 23% longer than those of students who did not receive mentoring. However, a year after the intervention, mentored students were no more likely to be employed than unmentored students.
While there was no difference in earnings three months after graduation among mentored and unmentored students, mentored students earned 18% more than unmentored students twelve months after graduation. Students who received mentoring and cash did not have higher workforce participation or earnings than those who received mentoring but not cash. The MYF program’s per student cost was modest at approximately USD 15 excluding administrative costs. This low cost, alongside its effectiveness, suggests that the mentoring program in this context could be a strong supplement to VTIs. The program led to increased employment and earnings among participants in the medium-run, which researchers attribute to both information about the labour market and the encouragement that mentors provided. These findings highlight the potential for improving labour market outcomes through the correction of initially distorted beliefs as well as the importance of striking a delicate balance between delivering bad news and instilling hope for better future outcomes. This equilibrium is essential for preventing discouragement, labour force withdrawal, and, in particular, the waste of valuable human capital among skilled workers.
