Household Wealth and Heterogeneous Impacts of a Market-Based Training Program: The Case of Projoven in Peru

38 Pages Posted: 11 Sep 2008 Last revised: 9 Nov 2008

See all articles by José Galdo

José Galdo

Syracuse University - Department of Economics; IZA Bonn

Miguel Jaramillo

Grupo de Analisis para el Desarrollo (GRADE)

Veronica S. Montalva

affiliation not provided to SSRN

Date Written: September 9, 2008

Abstract

This paper analyzes the relationship between households' wealth and heterogeneous treatment impacts for a market-based training program that has benefited more than 40,000 disadvantaged individuals in Peru since 1996. We proxy long-run wealth by a linear index based on 21 household assets, and three main findings emerge. First, we find that voluntary choices among eligibles, rather than administrative choices, play a bigger role in explaining demographic disparities in program participation. Second, quantile treatment effects on the treated suggest important differences in program impacts at different quantiles of earnings, and strong differences in distributional impacts for men and women. Third, both parametric-based and semiparametric regression-matching estimates reveal that the poorest among the poor benefit the same from the program. It is the type of institution that provides the training services that largely accounts for the heterogeneity of the impacts.

Keywords: training, program evaluation, factor analysis, poverty, quantiles, matching methods

JEL Classification: I38, H43, C13, C14

Suggested Citation

Galdo, José and Jaramillo, Miguel and Montalva, Veronica S., Household Wealth and Heterogeneous Impacts of a Market-Based Training Program: The Case of Projoven in Peru (September 9, 2008). Available at SSRN: https://ssrn.com/abstract=1265796 or http://dx.doi.org/10.2139/ssrn.1265796

José Galdo

Syracuse University - Department of Economics ( email )

Syracuse, NY 13244-1020
United States

IZA Bonn

P.O. Box 7240
Bonn, D-53072
Germany

Miguel Jaramillo (Contact Author)

Grupo de Analisis para el Desarrollo (GRADE) ( email )

Av, Graú 915
Barranco, Lima
Peru

Veronica S. Montalva

affiliation not provided to SSRN ( email )

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