Demand-Driven Training and Job Turnover: The Effects of Brazil’s Pronatec-MDIC at Firm and Worker Level
This paper explores for the first time the impact of a demand-driven training program on labor turnover at both firm and worker level. Launched in 2014 by the Ministry of Development, Industry and Trade (MDIC in Portuguese), Pronatec-MDIC allows firms to demand courses which some of their workers apply to. Difference-in-difference estimates find that workers who enroll in the courses demanded by their employers increase their job tenure by 8.89 months compared to non-enrolled nominees. However, those who complete the training stay in the job 3.36 months less, on average, than those who do not. At firm level, results show that having a course approved is associated with higher turnover in the short run when considering subgroups of workers who participate in Pronatec-MDIC. The effect dissipates in the third year, suggesting that it takes time for firms to adjust their labor stock after course demand but stabilize afterwards.
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| Language: | English |
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Inter-American Development Bank
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| Subjects: | Labor Market, Human Capital, Training and Development, J24 - Human Capital • Skills • Occupational Choice • Labor Productivity, J63 - Turnover • Vacancies • Layoffs, P46 - Consumer Economics • Health • Education and Training • Welfare Income Wealth and Poverty, Education and Training; Turnover; Human Capital, |
| Online Access: | http://dx.doi.org/10.18235/0001748 https://publications.iadb.org/en/demand-driven-training-and-job-turnover-effects-brazils-pronatec-mdic-firm-and-worker-level |
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