Among active labor market programs, job training is popular in Latin America as an attempt to help the labor market insertion of disadvantaged youth, and also as a way of providing skills to low-income groups to enable them to deal with the challenges of globalization. This paper summarizes the findings from the first rigorous set of evaluations to job training programs in Latin America that were made in the context of a project undertaken by the Office of Evaluation and Oversight at the Inter-American Development Bank. This research was complemented by two independent impact evaluations of similar training programs in Chile and Colombia. We report the results of two evaluations with an experimental design (the Dominican Republic and Colombia), one with a natural experiment (Panama) and four non-experimental evaluations (Argentina, Chile, Peru and Mexico). Overall, the results
suggest that employment effects range from modest to meaningful –increasing the
employment rate by about 0 to 5 percentage points—although higher and significant for some groups such, as women in Colombia and Panama –with impact of 6 to 12 percentage points in the employment rate. In most cases there is a larger and significant impact on job quality, measured by getting a formal job, having a contract and/or receiving health insurance as a benefit. Finally, we present an operational definition of the impact of trainingon “employability” in the context of a dynamic model with state dependence and unobserved heterogeneity, which we were able to apply in the evaluations of the Dominican Republic, Panama and Argentina.