Assessing job training effectiveness in Chile: A longitudinal approach

Abstract

The process of technological change brings significant challenges to societies. While private sector organizations seek to include new technologies in their production processes, individuals and government agencies look for possibilities for adaptation. In the context of highly unequal countries such as those in Latin America, the way the adaptation occurs can play a significant role in social mobility and family wealth creation. As the literature suggests, one of the essential policy tools to cope with changes in the labor market lies in job training policies. In this article, I assess the effectiveness of the Chilean training system, focusing on how training affects wages. Using the Casen household survey and the Social Protection Survey longitudinal versions, I estimate a training skill premium near 11%. While the different data sources show that job training has an effect, differentiation of this effect lies with the decision maker in the training process.

Wage heterogeneity in the graduate market: Industry and public-private differences in Chile

“…The policy challenge: Employment, wages, and economic development While the policy environment has been supportive of increasing workers' human capital accumulation through formal education, the institutions that reign over the skill regime and occupational licensing and certifications have shown little development in the last 20 years, being subject to redefinitions by each administration and lacking enough stability to ensure a recognizable ground for non-formal learning (Didier, 2018(Didier, , 2022. That is the case of ChileValora, a public agency that aims to promote occupational certifications, which has faced several problems in increasing the adoption by workers and employers (e.g., unknown institutions, low information, and difficulties in the assessment of its usefulness) (IPSOS Chile, 2023;Wunder, 2021).…”