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Labor Training

What we do

The IDB is supporting a number of youth training programs in the Dominican Republic, Bolivia, Mexico and Peru, with similar programs also executed in other countries of the region, such as Uruguay, Chile and Panama. The Bank has also developed skill standards to improve the quality of technical education and training, and worked on strengthening national training systems.

Objectives

To develop relevant knowledge and operations in labor training with the aim of increasing productivity and worker's employability. Contribute to improve the design; pertinence, efficiency and impact of labor training policies and programs; and generate new evidence on experiences and outcomes of labor training in Latin America and the Caribbean.

Why labor training?

In recent years the region has enjoyed substantial economic growth but the medium-term growth prospects are more moderate. This is because productivity growth has been quite low, lagging behind that of other regions. Poverty and inequality have declined but remain high because low productivity keeps wages of low-skilled workers low. Moreover, once workers enter the labor market, they have few opportunities to increase their skills and earnings.

Evidence from developed economies shows that labor training brings major benefits: higher wages, more job stability, enhanced labor conditions, improved labor insertion, and productivity gains. Despite those significant returns, Latin American investments in labor training are low. Market failures and equity concerns justify public interventions. Improving the reach and the quality of labor training and lifelong learning in the region is crucial to providing better job opportunities.

Some numbers

Only 15% of workers in Chile, 21% in Colombia, 21% in Peru and 24% in Uruguay get access to any form of skill upgrading. However, the region invests a significant amount of resources in training. There is consensus about the need for sustained investment in human capital, acknowledging the changing demands from markets, and the challenge of raising productivity. It is essential to design more effective mechanisms that enable the labor force to find and retain good jobs while continuously developing new skills and abilities.

Our impact

Dominican Republic: "Labor Markets and Social Transfers" Project

Vídeo

Youth and Employment
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    Youth and Employment

    More than 57,000 low-income Dominican young people have received labor training to access a better job. The evaluations have improved the effectiveness of the Youth and Employment Program in the Dominican Republic.
  • Youth and Employment (05:03) Video Icon

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