The cost-effectiveness of national training systems in developing countries

This paper reviews the literature on the cost-effectiveness of different modes of occupational training, focusing primarily on employer-sited training, occupational training within formal education, and out of school center-based training. The literature can be divided into two categories: studies which have attempted to measure in quantitative terms the benefits and costs of different modes of training, and qualitative studies which have examined non-measurable aspects of cost-effectiveness. Among the conclusions brought to light are: that schools should be responsible for teaching basic skills and the theoretical aspects of vocational training, and employers should be responsible for the practical end - with on-the-job training supplemented in some cases by training at training centers. Institutionalized pre-employment training for entry-level jobs is less cost-effective - despite wishful thinking that it provides an easy solution to the problems of mass youth unemployment.