Short Run Effects of Skill Training for the Unemployed

Using administrative data and multiple methodologies, including parametric and nonparametric approaches, we evaluate a skilling and placement initiative of the Government of India. We study potential job seekers’ employment outcomes, among those who have registered for this skill training program in four major states of India. The results for the baseline and follow up survey data for the treatment and comparison groups show that there is a large positive and significant impact of training on wage employment in the short run. The results are robust to employing recently developed non-parametric econometric methodologies. Further, while there are no differences by gender in the effect of training on wage employment, trained women are also more likely to engage in self-employment. One of the key reasons that hinders youth employment in developing countries is large skill gap due to lack of formal education. Our findings suggest that policy-makers, particularly in developing countries, can consider skill training programs as an essential policy tool for increasing employability, particularly among women