Working Paper: NBER ID: w27548
Authors: Felipe Barrera-Osorio; Adriana D. Kugler; Mikko I. Silliman
Abstract: We randomly assign applicants to over-subscribed programs to study the effects of teaching hard and soft skills in vocational training and examine their impacts on skills and labor market outcomes using both survey and administrative data. We find that providing vocational training that either emphasizes social or technical skills increases formal employment. We also find that admission to a vocational program that emphasizes technical relative to social skills increases overall employment and also days and hours worked in the short term. Yet, emphasis on soft-skills training helps applicants sustain employment and monthly wages over the longer term and allows them to catch up with those learning hard skills. Further, through a second round of randomization, we find that offering financial support for transportation and food increases the effectiveness of the program, indicating that resource constraints may be an obstacle for individuals considering vocational training.
Keywords: vocational training; hard skills; soft skills; labor market outcomes; Colombia
JEL Codes: C21; I25; I26; J24; J60; O54
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| vocational training emphasizing social or technical skills (J24) | formal employment rates (J89) |
| technical skills training (J24) | initial employment rates (J68) |
| technical skills training (J24) | greater hours worked (J38) |
| social skills training (J24) | long-term employment stability (J63) |
| resource constraints (D20) | participation in vocational training (M53) |
| offering stipends for transportation and food (J33) | effectiveness of vocational training (J24) |