An%20Econometric%20Cost%2DBenefit%20Analysis%20of%20Argentina%27s%20Youth%20Training%20Program

Working Papers (Research Network)

An Econometric Cost-Benefit Analysis of Argentina's Youth Training Program


CODE: R-482
AUTHOR(s): Bravo, David , Cossa, Ricardo , Elías, Víctor , Ruiz Núñez, Fernanda
PUBLISHED: November 2004
LANGUAGE: English
RELATED TOPICS: Poverty Reduction and Labor
DOWNLOAD FILE IN: English

Abstract:

The Youth Training Program (YTP) was an important component of Argentina’s active labor policy of the 1990s. The program offered courses of three months’ duration, divided equally between lectures and practical experience, and targeted young people, most of whom were not employed and had a low level of education. The program was offered by different institutions chosen through a bidding process and included courses in the fields of agriculture, manufacture, construction and services. This paper conducts an econometric cost-benefit analysis of the fifth round of the YTP. Benefits (wage increases, increase in likelihood of employment, increase in earnings) are estimated using non-matching (Before and After, Cross Section and Difference in Difference) and matching techniques based on propensity score estimate (Nearest Neighbor, Kernel, Local Linear Regression) in order to avoid selection bias. Estimates of the ATE and TT effects are also provided. A sample consisting of 1,670 beneficiaries and a similarly-sized comparison group provided the information necessary to apply the methodology. Benefit estimates are made for the aggregate, by gender and for both youth and adults. Regional differences are also provided. The cost includes direct and indirect components and the alternative cost of beneficiaries reducing their contributions to output during the program. Estimates of rate of return are provided based on the previous benefit and cost estimation. In general, the results support an estimate of 10 percent of return. This looks reasonable if it is compared with the very low rate of return of education estimated separately for the beneficiaries group. Finally, the management of the program is evaluated.

Related Research by JEL Codes:
(or click here to find research by JEL Codes)
  • The state of sexual and reproductive health in Latin America and the Caribbean: An overview
    Working Papers
    WP-632 - February 2008

    This paper reviews the state of sexual and reproductive health in several countries in Latin America and the Caribbean using the Demographic and Health Surveys to select countries according to their stage in the demographic transition. The results indicate advances in some areas, the most favorable being in countries with low fertility and among higher social classes. However, there are still impo ... (View publication)

  • Soap Operas and Fertility: Evidence from Brazil
    Working Papers
    WP-633 - June 2008

    This paper focuses on fertility choices in Brazil, a country where soap operas (novelas) portray families that are much smaller than in reality, to study the effects of television on individual behavior. Using Census data for the period 1970-1991, the paper finds that women living in areas covered by the Globo signal have significantly lower fertility. The effect is strongest for women of lower so ... (View publication)

  • Sumaq Warmi: Reducing Violence Against Women in Microfinance
    Technical Notes
    IDB-TN-1387 - March 2018

    This paper evaluates the impact of Sumaq Warmi, a program that provided educational training on human rights and violence against women and children to female village banking clients in rural Peru. Within the experimental sample of banks chosen, the treatment was cluster-randomized at the village level. Two years after the intervention started, effects are not found on women’s perceptions of s ... (View publication)

Hello, Welcome to the IDB!

Please join our mailing list by simply entering your email below.