Vocational Training and labor market outcomes: Evidence from a randomized program in Brazil

This study analyzes the effects of an extensive public technical education program in Brazil. Exploring the fact that acceptance to the program was randomized, with students in over-subscribed classes selected through a lottery, we look at the effects of an offer for the program over formal employment, type of occupation and attachment to the labor market. Our findings show no significant effect over formal employment, earnings or the level of attachment after the program. On the other hand, the program significantly improved the match between students and jobs, with an increase of 1 p.p. (100%) in the probability that an individual is employed in an occupation associated with the course chosen. We also find evidence that receiving an offer for the program led to a higher probability of being employed in an occupation with a higher skill demand. When we examine how these results vary by the gender of the applicant, we find that, while gains in associated occupations are similar for both groups, the effects for high skill jobs appear only men and neither experience improvements on employment or wages after the end of the courses.