Wodon, Quentin and Minowa, Mari (2001): Training for the Urban Unemployed: A Reevaluation of Mexico's Training Program, Probecat. Published in: World Bank Economists' Forum (July 2001): pp. 197-215.
Download (870kB) | Preview
For many years the government of Mexico has implemented a large training program for the unemployed. The program has been evaluated twice before with similar methodologies. These two evaluations yielded encouraging results in that the program apparently reduces unemployment and increases earnings. This article suggests that both evaluations may suffer from inappropriate controls for the endogeneity of program participation. Using the availability of the program at the state level as a determinant of individual participation, the article uses the data of the second evaluation to indicate that Probecat does not decrease unemployment, nor does it increase wages.
|Item Type:||MPRA Paper|
|Original Title:||Training for the Urban Unemployed: A Reevaluation of Mexico's Training Program, Probecat|
|Keywords:||Mexico; probecat; employment programs|
|Subjects:||J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J23 - Labor Demand
|Depositing User:||Quentin Wodon|
|Date Deposited:||21. Dec 2008 07:36|
|Last Modified:||13. Feb 2013 09:12|
Carlson, S. 1991. "Mexico Labor Retraining Program: Poverty Alleviation and Contribution to Growth." Report No. 6. World Bank, Latin America and the Caribbean Technical Department, Regional Studies Program, Washington, D.C.
Dar, A., and I. S. Gill. 1998. "On Evaluating Retraining Programs in OECD Countries." World Bank Research Observer 13:79-101.
Fleck, S., and C. Sorrentino. 1994. "Employment and Unemployment in Mexico's, Labor Force." Monthly Labor Review, November: 3-31.
Foley, P. 1992. "Local Economic Policy and Job Creation: A Review of Evaluation Studies." Urban Studies 29(3-4):557-98.
Goldberger, A. 1983. "Abnormal Selection Bias." In T. Amemiya and I. Olkin, eds., Studies in Econometrics, Time Series and Multivariate Statistics. San Diego, London, and Toronto: Academic Press.
Heckman, 1. 1979. "Sample Selection Bias as a Specification Error." Econometrica 47(1):54-61.
Manski, C. 1996. "Review of the Probecat Program Evaluation Study." World Bank, Washington, D.C.
Ravallion, Martin, and Q. Wodon. 1998. Evaluating a Targeted Social Program When Placement Is Decentralized. Policy Research Working Paper 1945. World Bank, Washington, D.C.
Ravallion, Martin, and Q. Wodon. 2000. "Does Child Labor Displace Schooling? Evidence on Behavioral Responses to an Enrollment Subsidy." Economic Journal 110(462):C158-75.
Revenga, A., M. Riboud, and H. Tan. 1994. "The Impact of Mexico's Retraining Program on Employment and Wages." World Bank Economic Review 8(2):247-77.
Rosenbaum, P., and D. Rubin. 1983. "The Central Role of the Propensity Score in Observational Studies for Causal Effects." Biometrika 70:41-55.
Rosenbaum, P., and D. Rubin. 1985. "Constructing a Control Group Using Multivariate Matched Sampling Methods That Incorporate the Propensity Score." American Statistician 39:35-39.
STPS (Secretaria del Trabajo y Previsi6n Social). 1995. Evaluaci6n del Programa de Becas de Capacitaci6n para Desempleados. Mexico, D.F.: STPS.