The Fast Track to New Skills

Page 67

43

Landscape of Short-Cycle Programs in Latin America and the Caribbean

stylized fact shows, SCP graduates in LAC accomplish better labor market outcomes than many bachelor’s students, suggesting that, even if they have low standards, SCPs do increase students’ human capital.

Stylized fact 5. In the labor market, SCP graduates do better than high school graduates and dropouts from bachelor’s programs. Figure 1.7, panel a, shows the unemployment rate for members of the WAP with at least a high school diploma. SCP graduates experience the lowest unemployment rate (3.7 percent) of all five educational attainment levels.14 In LAC, on average, 48 percent of the WAP consists of informal workers. These include salaried workers at firms with up to five employees, self-employed workers with at most a high school diploma, and workers with unreported income. While, on average, 52 percent of high school graduates work in the formal sector (figure 1.7, panel b), 82 percent of SCP graduates do. Formal employment for SCP graduates is lower than for bachelor’s graduates, yet substantially higher than for bachelor’s dropouts. On average, the hourly wages of SCP graduates are 45 percent higher than those of high school graduates (figure 1.7, panel c). This premium is certainly lower than that of bachelor’s graduates, for whom it equals 124 percent. However, it is higher than the premium for bachelor’s dropouts.15

Figure 1.7  Labor Market Outcomes, by Educational Attainment, circa 2018

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Source: World Bank calculations based on the Socio-Economic Database for Latin America and the Caribbean (SEDLAC). Note: The figures depict average labor market outcomes for the working-age population, defined as individuals between ages 25 and 65, based on their educational attainment. Complete bachelor’s includes individuals with graduate degrees. For each educational attainment, the corresponding bar shows the simple average outcome over countries. Panel a shows the unemployment rate (percentage of unemployed individuals relative to the labor force). Panel b shows the percentage of individuals who have formal employment. Informal workers include salaried workers in firms with up to five employees, self-employed workers with at most a high school diploma, and workers with no reported income. In panel c, the premium in each category reflects the percent by which the average (hourly) wage in the category exceeds the average (hourly) wage for high school graduates. The difference between complete SCP and incomplete bachelor’s is significantly different from zero in panels a, b, and c. The difference between complete SCP and complete bachelor’s is significantly different from zero in panel c, but not in panel a or b. Comp. = complete; HS = high school; Incomp. = incomplete; SCP = short-cycle programs.


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References

8min
pages 211-217

Notes

2min
page 210

5.7 Flexible Academic Pathways in the United States

7min
pages 204-206

5.6 Oversight and Regulation Reform: Recent Attempts in LAC

2min
page 202

Skill Development Pathways

2min
page 203

Institutions in the United States

2min
page 201

Funding

4min
pages 195-196

Oversight and Regulation

7min
pages 198-200

5.3 What Do We Know about Information Interventions?

4min
pages 193-194

Information

5min
pages 191-192

Education in LAC

2min
page 190

Education Markets?

5min
pages 188-189

4.3 Quality Determinants and Value Added: The Case of Brazil

5min
pages 170-171

References

4min
pages 181-184

Notes

4min
pages 179-180

Graduates’ Wages

2min
page 169

4A.2 Summary of Results B5.4.1 Net Present Value of SCPs, from the Policy

1min
page 176

Formal Employment

4min
pages 167-168

Extra Time to Degree

4min
pages 165-166

A LASSO-Regression Approach

5min
pages 162-163

Dropout Rates

1min
page 164

and Student Outcomes

2min
page 161

SCPs in Colombia

9min
pages 157-160

4.1 Student Academic Outcomes, by Country

2min
page 152

Defining and Measuring SCP Quality

4min
pages 150-151

References

1min
page 146

Notes

2min
page 145

Conclusions

2min
page 144

3.2 Two Market Paradigms: Colombia and Chile

2min
page 120

3.23 Activities to Support Students’ Job Search

2min
page 141

Notes

4min
pages 111-112

Conclusions

2min
page 110

References

5min
pages 113-116

by Country

2min
page 107

Overall and by Field of Study

2min
page 105

Contribution (Value Added) of SCPs Demand for SCP Graduates: Exploiting

2min
page 103

Expanding the Supply of SCPs: Who Would Benefit and Why?

5min
pages 100-101

2.4 Estimating Value Added

2min
page 104

Economic Value of SCPs in LAC

2min
page 89

2.2 Estimating Mincerian Returns

2min
page 90

What Do We Know?

7min
pages 86-88

2.1 Sources of Information

4min
pages 84-85

References

1min
page 82

Conclusions

2min
page 76

Critical Institutional Aspect: Funding

2min
page 68

Notes

4min
pages 80-81

and of High School Graduates, circa 2018

4min
pages 65-66

1.2 Fundamental Data Source: SEDLAC

5min
pages 62-64

circa 2018

2min
page 67

1.1 Short-Cycle Programs in the United States and Germany

2min
page 60

Framework of the Book

2min
page 53

O.1 In LAC, Students in SCPs Are More Disadvantaged and Less Traditional Than Those in Bachelor’s Programs

2min
page 30

Policy to Realize the Potential of SCPs

4min
pages 43-44

I.1 Some Technical Aspects of the World Bank Short-Cycle Program Survey

2min
page 51

World Bank Short-Cycle Program Survey

2min
page 50

O.4 On Average, SCPs in LAC Have Good Curriculum, Infrastructure, and Faculty—but with Much Variation

4min
pages 39-40

BI1.1 Universes, Samples, and Response Rates, by Country

2min
page 52

Introduction

4min
pages 47-48
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