Can German vocational training combat skill shortages in developing countries? Evidence from dual training system in the Philippines
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Wiley
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This paper examines the labor market impacts of the Philippine Dual Training System (DTS), a vocational training program that combines firm‐based on‐the‐job training (OJT) and conventional institution‐based training, using a recent survey that tracked graduates from DTS and regular institution‐based programs. The estimation results using fuzzy regression discontinuity design show a significantly positive impact on the most recent monthly earnings. The impact significantly increases with the OJT intensity, measured by the number of hours a week in OJT. The above results imply that vocational training has to be aligned with actual production technologies and work practices to narrow skill gaps and create positive returns.
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research methods, regression analysis, surveys, vocational training, production technology