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Vocational Training Programs And Youth Labor Market Outcomes: Evidence From Nepal, S Chakravarty, M Lundberg, Plamen Nikolov, J Zenker

Economics Faculty Scholarship

Lack of skills is arguably one of the most important determinants of high levels of unemployment and poverty. In response, policymakers often initiate vocational training programs in efforts to enhance skill formation among the youth. Using a regression-discontinuity design, we examine a large youth training intervention in Nepal. We find, twelve months after the start of the training program, that the intervention generated an increase in non-farm employment of 10 percentage points (ITT estimates) and up to 31 percentage points for program compliers (LATE estimates). We also detect sizable gains in monthly earnings largely driven by women who start self-employment …