Youth Employment Programs - Independent Evaluation Group

unemployed youth registered with the public job placement agency (whichalso provides stipends to program participants). Relative to a control group,an impact evaluation showed that participation in EPEM increased posttrainingwages, the probability of employment, and the likelihood of a formalsector job with social security and benefits (Rozada 2011).Work-based training is offered in less than a third of the Bank’s skillstraining projects. More than half of the Bank’s projects with skills traininghave private sector participation in classroom education. However,considerably fewer projects include work-based learning, and only 13 projectsuse a comprehensive approach with the private sector (table F.3). In manylow-income areas where the Bank is active, the small formal sector limits thenumber of work-based learning opportunities. In Colombia, Bank supportto new legislation allowing employers to pay a sub-minimum wage in jobtraining contracts increased the number of apprentices from 33,337 in 2002 to220,000 in March 2005.Skills Recognition and CertificationMost OECD countries have established some sort of skills certification systemto set skill standards for different occupations. Indeed, many developingcountries have started following suit. The success of a skills certificationsystem depends on its credibility with both potential trainees and employers.However, evidence on whether and how much skills certification hasa signaling effect for prospective employers, thereby improving youthemployment outcomes, is limited.Accreditation is seen as a way of making the degree/diploma morevaluable, especially if it involves a trusted private sector company. MostBank-supported TVET projects with a quality assurance goal emphasizedaccreditation of programs. However, a constraint is the potential formanipulation of the accreditation process, thereby devaluing its credibilityas an instrument for accountability. In India, Crisil India, a Standard & Poor’scompany with an established reputation for providing unbiased credit ratingsof companies, has recently started rating Master of Business AdministrationTable F.3 Private Sector Involvement in Skills TrainingNumber of projectsProjects with skills training for young people 75with private sector participation in education 48with job counseling or job search support 34with work-based vocational training 29with private sector participation in education, counseling, and work-based vocational training 13Source: IEG portfolio review based on World Bank data.154 Youth Employment Programs