Evaluation of a Targeted Private Sector Skill Training Program in Bangladesh

r4d Working Paper 2016/11 by Selim Raihan and Abu S. Shonchoy

ABSTRACT: This study evaluates a private sector targeted skill development program implemented by a local NGO to help young members of extreme poor families to acquire skills which can help them to secure jobs in garment factories. Employing IV approach, we find that the training program was quite successful in terms of inducing migration and securing a formal wage employment at the urban destinations. We also found evidence that the training program improved the asset holding (both land and non-land as well as livestock) of the participating households. In addition, we find moderate evidence of program effect on improving social status and reducing dependency on loan-sharks during the time of seasonality by the participating households. However, we did not find any statistically significant evidence of the training impact on increasing household income, which may show limited effect of such low-level skill training program in the short-run.