Working Paper: NBER ID: w23264
Authors: Paloma Acevedo; Guillermo Cruces; Paul Gertler; Sebastian Martinez
Abstract: We study the interaction between job and soft skills training on expectations and labor market outcomes in the context of a youth training program in the Dominican Republic. Program applicants were randomly assigned to one of 3 modalities: a full treatment consisting of hard and soft skills training plus an internship, a partial treatment consisting of soft skills training plus an internship, or a control group. We find strong and lasting effects of the program on personal skills acquisition and expectations, but these results are markedly different for young men and young women. Shortly after completing the program, both male and female participants report increased expectations for improved employment and livelihoods. This result is reversed for male participants in the long run, a result that can be attributed to the program’s negative short-run effects on labor market outcomes for males. While these effects seem to dissipate in the long run, employed men are substantially more likely to be searching for another job. On the other hand, women experience improved labor market outcomes in the short run and exhibit substantially higher levels of personal skills in the long run. These results translate into women being more optimistic, having higher self-esteem and lower fertility in the long run. Our results suggest that job-training programs of this type can be transformative – for women, life skills mattered and made a difference, but they can also have a downside if, like in this case for men, training creates expectations that are not met.
Keywords: job training; gender differences; labor market outcomes; expectations; Dominican Republic
JEL Codes: J08; J24; J31; J68
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Vocational and soft skills training (J24) | Enhanced personal skills and expectations for women (J16) |
| Enhanced personal skills and expectations for women (J16) | Improved labor market outcomes (J48) |
| Vocational and soft skills training (J24) | Improved labor market outcomes for women (J79) |
| Combined vocational and soft skills treatment (J24) | Reduction of 11 percentage points in employment likelihood for men (J79) |
| Vocational training component (M53) | Expectations for higher wage offers that do not materialize for men (J31) |
| Expectations for higher wage offers that do not materialize for men (J31) | Discouraged worker effect (J64) |
| Long-term outcomes for women (J16) | Higher optimism and self-esteem (I31) |
| Long-term outcomes for men (I12) | Signs of discouragement and reduced future expectations (D84) |
| Vocational and soft skills training (J24) | Cycle of negative outcomes for men (J12) |