Felipe Barrera-Osorio, Adriana Kugler, Mikko Silliman, 24 October 2020

Policymakers are growing increasingly interested in the effects of vocational training on labour market outcomes. This column uses an experimental design to test whether technical and/or soft skills can sustain the returns from vocational programmes. Using survey and administrative data, it finds large and persistent positive effects of training on employment and wages. In addition, an emphasis on technical skills increases short-term outcomes, while soft skills training improves labour market dynamics in the long run. Finally, resource constraints may be an important obstacle for obtaining such training, particularly for lower-income households.

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