Added Title

DLSU-AKI Working Paper Series 2017-039

College

School of Economics

Department/Unit

Economics

Document Type

Working Paper

Publication Date

5-25-2017

Abstract

This paper estimates the impacts of the Philippine Dual Training System (DTS) on labor market outcomes using a recent survey that tracked graduates from DTS and non-DTS programs provided by vocational training institutes. DTS programs partner with local employers to combine on-the-job training (OJT) with the conventional school- or center-based instructions, while non-DTS programs consist solely of the latter. The estimation results in Fuzzy Regression Discontinuity Design show a significantly positive impact on the most-recent monthly earnings. Quantitatively, the impact on the most-recent monthly earnings attributable to DTS is large, that is, more than 75% increase relative to the average non-DTS program graduate earnings, and the impact significantly increases with the OJT intensity, measured by the number of hours of in-company training and work. The above results indicate that the OJT part of DTS is the essential contributor to higher earnings of the DTS graduates.

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Disciplines

Vocational Education

Keywords

Dual training; On-the-job training; Labor market; Philippines

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