Vocational training
Vocational training
Have vocational training programmes in low- and middle-income countries been an effective development intervention?
Yale’s Economic Growth Center and VoxDev are collaborating on Development Dialogues, a podcast series that will facilitate direct and honest conversations between policy actors and researchers. This collaboration builds onVoices in Development, a podcast from Yale’s Economic Growth Center exploring issues related to sustainable development and economic justice in low- and middle-income countries, and the VoxDevTalks podcast.
In this episode of Development Dialogues, Oriana Bandiera, Stefano Caria and Munshi Sulaiman examine the real impact of vocational training programmes in low- and middle-income countries. The discussion tackles pressing questions around evidence, expectations, market realities, and coordination challenges in designing skills-based interventions for employment.
Vocational training: A mixed bag of evidence
Vocational training has long been seen as a solution to unemployment and poverty, but the episode opens by dismantling the idea that it is a silver bullet.
“From the evidence point of view, vocational training is a perfect example of a mixed bag.” Oriana Bandiera.
While some programmes show promising results the overall impact is far from transformational.
“Maybe depending on which meta-analysis you look at, we are talking of 5, 6, 7, percentage points increases in employment. That’s sizable, but by no means is the kind of full solution to the employment problem the governments in low- and middle-income countries are looking for.” Stefano Caria
This emphasises a lack of clarity around the underlying issues training aims to address.
Are we training people for jobs that do not exist?
A recurring theme is the disconnect between training and actual job opportunities. This has been the case for the Rohingya refugees in Bangladesh.
“We are doing lots of training, but of course, they don't have the rights to work. So, in some ways, there is no skill that they can market.” Munshi Sulaiman
In these settings, the focus on enrolment numbers often overlooks deeper labour market needs.
Additionally, the sectors targeted by training are often outdated or unimaginative—such as tailoring, welding, and carpentry—neglecting critical job markets including care work and green economy.
Beyond training: Addressing the real constraints
The conversation reveals that training alone is not enough without tackling cost, selection bias, time constraints, and demand-side barriers. For example, a childcare voucher trial in Egypt ultimately had little effect on women’s employment. This was due, in part, to limited nursery hours and unattractive job prospects for mothers.
Bandiera and Caria share a BRAC trial that explored whether offering training on a ‘pay if employed’ basis would work.
“Take up was very low, and those who did do the training didn't benefit at all.” Oriana Bandiera
Cost-effectiveness and the role of donors
Donors often favour vocational training, not necessarily because it is the most effective, but because it is easy to track and justify.
“The cost does play some role, but some of the training program I have seen cost, often as much as the ultra-poor graduation program... sometimes even $1,000 for six months of training on welding.” Munshi Sulaiman.
Interventions such as job search support and certification, however, offer cheaper, effective alternatives to vocational training programmes.
“Now we are talking... not $400 per participant, but maybe $14 per participant... And at least in terms of impacts on employment... those interventions are often successful.” Stefano Caria
Who benefits and who is left behind?
A critical point raised by the guests is the unequal impact of vocational training.
“It might look unequal to focus on younger men without children from richer families, but that's not wasted money. You always have to think about the counterfactual. If the counterfactual is offering training to people who don't benefit, then it's better to just focus on those who benefit.” Oriana Bandiera
Training often assumes a baseline level of human capital, which not all participants have.
“Training programs assume a certain level of starting human capital and build on it…. Some of these are related to the opportunity cost of time, how much time you've got available... how much time you have to focus.” Stefano Caria
Absenteeism, childcare, and digital literacy also present barriers.
Rethinking training: Coordination and market-level interventions
One of the biggest takeaways is the need to go beyond individual-level interventions and aim for market-level change.
“If many people get trained, maybe a new firm will open... all those big externalities are missed out because all the evidence we have is within a market.” Oriana Bandiera
The discussion highlights the need to match training with real labour demand, especially in emerging sectors such as childcare and solar energy.
For example, Morocco has invested heavily in solar energy—opening what may be the largest solar power plant in the world—but the training sector has not kept pace.
Conclusion: Equity, evidence, and evolving approaches
This episode calls for a serious rethinking of how vocational training is used in development.
The panel collectively urges donors and practitioners to shift from a short-term, number-focused mindset to one that prioritises long-term outcomes, equity, and real-world job alignment.
“Otherwise, we dismiss treatments that could be perfectly valid, like vocational training in a new skill, simply because we treat too few people for that to generate a market.” Oriana Bandiera.
vocational training Labour Markets BRAC
Share this voxdevtalk:
Related Content [Search and Hiring Friction
Search and Hiring Friction](https://voxdev.org/voxdevlit/barriers-search-and-hiring-urban-labour-markets)
Barriers to Search and Hiring in Urban Labour Markets
Published 05.02.24
[vocational and apprentice training
vocational and apprentice training](https://voxdev.org/topic/labour-markets/vocational-and-apprenticeship-training-programmes-developing-countries)
Vocational and apprenticeship training programmes in developing countries
Published 30.07.24
Hard and soft skills in vocational training: Experimental evidence from Colombia
Published 24.08.20
Helping jobseekers signal their skills: A cost-effective strategy benefitting workers and firms
Published 05.12.24
Looking for work: Evidence from the Ugandan labour market