Youth Development Project. Click to edit Master subtitle style Juan Martin Moreno Senior Social Protection Economist World Bank April 22 nd, 2014

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2 Youth Development Project Click Dominican to edit Master Republic title style Click to edit Master subtitle style Juan Martin Moreno Senior Social Protection Economist World Bank April 22 nd, 2014

3 Context. Dominican Republic Demographically young population Relatively low unemployment (7%) Large incidence of NEET (neither on education, employment or training) 25% aged NEET 11% aged don t search either

4 History of the Program IADB started project preparation First loan with Ministry of Labor Original design: TVET + internship WB approved a US$ 20 m. loan to finance Juventud y Empleo New Designed included Life Skills Training (DCB) WB started implementation Project was restructured to include a Temporary Employment Program Santiago Trabaja Project closed. 38,000 youth at risk trained under WB loan. 75,000 in total

5 Design of the Youth Training Program Goal: Improve the employability of at-risk youth Target population: unemployed people between the ages of that have dropped out of school Program content: 225 of in-class training + 2 months on the job learning 75 Life skills TVET + internship Stipend: 2 dollars daily (now raised to US$ 3) to avoid drop outs Implementation: COS (INFOTEP pre-certified private training providers) competitively selected by MT or INFOTEP Average cost per participant: US$ 400. Duration 5/6 months

6 Design of the Impact Evaluation: Youth Training Program Experimental design: randomized treatment/control groups Value added: 2 treatment groups to isolate the effects of Life Skills from TVET Observations: 5. Baseline survey. CATI (3-round panel). Endline survey at household level Sample size: 4,700 observations Attrition: 15% Main output variables: Employment rate, Hourly wages Indirect effects: teenage pregnancy, risky behaviour, crime and violence, substance abuse

7 Results of the Impact Evaluation: Youth Training Program No overall effect on employment No overall effect on wages Positive effects on certain groups When significant, Higher contribution from Life Skills (than TVET) Positive effect on lower inactivity (5-12%): search and unemployment Higher job expectations and job satisfaction Positive and significant effect on women employment Reduction of teenage pregnancy Higher probability of smoking Targeting: 95% of participants live in poor areas (SIUBEN I and II)

8 Results of the IE: Youth Training Program. IADB (2011) 70% 60% 50% 40% 30% 20% 10% 0% 8/04 10/04 12/04 2/05 4/05 6/05 8/05 10/05 12/05 2/06 4/06-10% -20% tratados controles diferencia ic ic Programa de Cursos 2009 Programa Juventud y Empleo» Secretaría de Estado de Trabajo

9 Examples of TVET courses Salesman Beautician Waiter Pharmacy clerk Bartender Secretary Accountant clerk Electrician Cook Hairdresser IT network technician Car mechanic assistant Data Entry Bank Clerk Graphic design assistant

10 Contents of the Life Skills curricula (I) 1. Motivation: self esteem, interpersonal relationships and self-fullfilment 2. Life at Work 3. Social skills 4. Search: jobs or income generating activities

11 Contents of the Life Skills curricula (I) 1. Motivation: self esteem, interpersonal relationships and self-fullfilment a) Strengths and weaknesses b) Communication skills c) Dealing with personal relationships 2. Life at Work a) Planning: Life and labor insertion b) Job quality and productivity c) Decision making d) Hygiene, health and labor risks

12 Contents of the Life Skills curricula (II) 3. Social skills a) Reproductive health and conflict solving b) Social Network participation c) Dealing with social risks 4. Search: jobs or income generating activities a) National Employment System (SENAE) b) Intermediation Services c) Tools and techniques for job searching. Interviews

13 Development of the life skills module Knowledge exchange process Project preparation (2005) International Workshop in DR Specialist in Curricula Development Consultation process with trainers, firms and youth Bottom up process, validated with INFOTEP Original course: 75 hours Current version: 150 hours Malleability: No entry requisites Taught by psycologist or certified trainers

14 Program Comparison Youth training P Juventud y Empleo Temporary Employment P Santiago Trabaja 3 months training + 2 months internships 3 months working + 1 month working Daily stipend (US$ 60 month) Fortnight payment (US$ 50) + SS contributions Per capita cost: US$ 400 Per capita cost: US$ 600 Target group: 16-29, NEET and poor Co-implemented with INFOTEP/COS Training: TVET + Life Skills Targeting: training providers 18-65, Less employable (unemployed, unskilled, poor) Co-implemented with NGOs and local govts. Life Skills Employment services through employability index

15 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Non-randomized trial. Effect of TEP 80% 70% 60% 50% 40% 30% 20% 10% 0% Non-beneficiaries Beneficiaries

16 Final messages Interventions are not panacea Better results when interventions are combined Depending on the target population, Life Skills can be better (and cheaper) than TVET To obtain a similar outcome, don t copy and paste output, replicate the process Life Skills component need to be crafted for the intervention (and target pop.) No silver bullet. Each phase of the economic cycle requires a different intervention Gracias!

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