The Impact of Mexico's Retraining Program on Employment and Wages |
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| Authors: | Revenga Ana; Riboud Michelle; Tan Hong |
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| Institution: | At the World Bank, Ana Revenga is in the Latin America and Caribbean Country Department II, Michelle Riboud is in the Europe and Central Asia Country Department IV, and Hong Tan is in the Private Sector Development Department. Ana Revenga also holds a joint appointment at the Banco de Espana. The authors thank the Directión General de Empleo, Secretaría del Trabajo y Previsión Social, Mexico, for providing the data used in this article. They also acknowledge Feliciano Iglesias, Frank Lysy, Sweder van Wijnbergen, and the journal referees for their helpful comments, and Muriel Aza for providing competent research assistance. |
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| Abstract: | This article analyzes the impact and effectiveness of the Mexicanlabor retraining program for unemployed and displaced workers—Programade Becas de Capacitación para Trabajadores (PROBECAT).The strategy followed is to compare the post-training labormarket experiences of trainees with those of a comparison group—amatched sample of unemployed individuals who were eligible for,but did not participate in, PROBECAT. The results of this exercisesuggest that participation in PROBECAT reduced the mean durationof unemployment for both men and women trainees and increasedthe monthly earnings of men, but not of women. The results alsoindicate that the post-training earnings effect varied systematicallyby level of education attained, with the largest earnings increases(of about 28 to 37 percent) found for men with six to twelveyears of education. |
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