Can Business Input Improve the Effectiveness of Worker Training?
This study evaluates the employment effects of a publicly-run national technical vocational education training program in Brazil that explicitly takes input from firms in determining the location, scale, and skill content of courses offered. Using exogenous course capacity restrictions, the study finds that those completing the course following receipt of a course offer have an 8.6 percent increase in employment over the year following course completion. These effects come from previously unemployed trainees who find employment at non-requesting firms. The demand-driven program's effects are larger and statistically distinguishable from those of a broader and institutionally-similar publicly-administered skills training program run at the same time that did not take input from firms. The study finds that the demand-driven program better aligned skill training with future aggregate occupational employment growth -- suggesting the input from firms captured meaningful information about growth in skill demand. Courses offered in occupations that grew more over the year following requests exhibited larger employment effects, explaining the effectiveness of the demand-driven model.
Main Authors: | , , , |
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Format: | Working Paper biblioteca |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2017-07
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Subjects: | WORKFORCE DEVELOPMENT, WORKFORCE TRAINING, VOCATIONAL EDUCATION, TECHNICAL TRAINING, VOCATIONAL TRAINING, BUSINESS SERVICES, LABOR DEMAND, UNEMPLOYMENT, |
Online Access: | http://documents.worldbank.org/curated/en/444871501522977352/Can-business-input-improve-the-effectiveness-of-worker-training-evidence-from-Brazils-Pronatec-MDIC https://hdl.handle.net/10986/27961 |
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Summary: | This study evaluates the employment
effects of a publicly-run national technical vocational
education training program in Brazil that explicitly takes
input from firms in determining the location, scale, and
skill content of courses offered. Using exogenous course
capacity restrictions, the study finds that those completing
the course following receipt of a course offer have an 8.6
percent increase in employment over the year following
course completion. These effects come from previously
unemployed trainees who find employment at non-requesting
firms. The demand-driven program's effects are larger
and statistically distinguishable from those of a broader
and institutionally-similar publicly-administered skills
training program run at the same time that did not take
input from firms. The study finds that the demand-driven
program better aligned skill training with future aggregate
occupational employment growth -- suggesting the input from
firms captured meaningful information about growth in skill
demand. Courses offered in occupations that grew more over
the year following requests exhibited larger employment
effects, explaining the effectiveness of the demand-driven model. |
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