The Impacts of On-the-Job Training on Labor Market Outcomes Dual Training System in the Philippines

• Main Authors: Yamauchi, Futoshi, Tiongco, Marites M., Kim, Taejong, Lee, Kye Woo
• Format: text
• Published: Animo Repository 2017
• Subjects: Dual training; On-the-job training; Labor market; Philippines; Vocational Education
• Online Access: https://animorepository.dlsu.edu.ph/res_aki/73; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1048&context=res_aki
• Institution: De La Salle University

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.