Impact Evaluation 4 Peace24-27 March 2014, Lisbon, Portugal

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What We Do (and Don't) Know about Human Capital Development

Presented by: Vincent PonsAdditional team members: Ben Feigenberg, Anil JainLatin America and the

Caribbean’s Citizen SecurityTeam

What We Do (and Don't) Know about Human Capital Development

Presented by: Vincent PonsAdditional team members: Ben Feigenberg, Anil Jain

MDGs : what’s missing?

MDGs : what’s missing?

Human capital = education

MDGs : what’s missing?

Human capital = education

MDGs : what’s missing?

Human capital = education + jobs training

MDGs : what’s missing?

Human capital = education + jobs training

?

That’s unfair!

x

Jobs training deserves more

Why is jobs training important?

Keynes: “In the long run…”.

Long run = Education

Short run = Jobs Training

Why is jobs training important?

• 40% of firms in Sub-Saharan Africa report concerns about inadequate worker skills and education

Why is jobs training important?

• “Informal, poorly paid and unemployed: The reality of work for most youth in developing countries.” – ILO May 2013

Why is jobs training important?

• “Two thirds of working age youth in some developing countries are either unemployed or trapped in low-quality jobs” – ILO Global Employment Trends for Youth 2013

The role of jobs training

• Last resort provider of human capital development in low-education settings

The role of jobs training

• Improve access to formal labor market

The role of jobs training

• Reduce employment vulnerability and increase adaptability

The role of jobs training

• Increase labor productivity and wages by matching worker skills to firm needs

Who should provide jobs training?• Low private sector provision…• … so room for

Example : Brazil’s SENAI

What do we need to learn?

• Who benefits most from training?• Who can provide training most effectively

(government, NGOs, private businesses)?• What are the skills (technical, cognitive,

behavioral) that training programs should focus on?

• What is the optimal duration/intensity of training?