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Human capital for inclusive growth Punjab Economic Opportunities Programme (PEOP) Growth Week 2010, LSE

Human capital for inclusive growth Punjab Economic Opportunities Programme (PEOP) Growth Week 2010, LSE. Ali Cheema Co-lead academic IGC, Pakistan. PEOP. GoPunjab & DFID’s flagship program Skills component uses active labor market programs (ALMPs)

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Human capital for inclusive growth Punjab Economic Opportunities Programme (PEOP) Growth Week 2010, LSE

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  1. Human capital for inclusive growth Punjab Economic Opportunities Programme (PEOP)Growth Week 2010, LSE Ali Cheema Co-lead academic IGC, Pakistan

  2. PEOP • GoPunjab & DFID’s flagship program • Skills component uses active labor market programs (ALMPs) • Engender inclusive growth in high poverty districts Cheema et. al. (2008)

  3. PEOP skills: objective & outcomes • Objective: Create inclusive growth (growth in HH income of poor and disadvantaged & reduction in poverty) • Big impact • Cost effective • Outcomes • Increase returns to employment & economic activity • Increase access to sustainable employment • Diversify income generating opportunities • Increase participation of women and disadvantaged

  4. PEOP skills • Punjab skill development fund GBP 25 million • Diverse and multiple ALMP interventions to incentivize 250,000 individuals to invest in skills acquisition over four years

  5. Unskilled, poor and marginalized individuals Work opportunities Labor market rewards skilled labor through higher wages and career growth opportunities The market for skills training equips people with marketable skills Skills Training

  6. PEOP skills: institutional framework • PSDF managed by Board with representation of private-sector, academia and government • Headed by a dynamic entrepreneur • Novel and exciting collaboration between academia, private-sector, DFID and government • Collaboration initiated at design stage • Evidence-based design and targeting using large baseline surveys • Embedded learning and program calibration by institutionalizing continuous RCT-based impact evaluation

  7. Challenges • Getting design right not straightforward • “…conclusion that emerges from the U.S. and European literature is that the impacts of job training are generally modest, at best” (Card et. al.2007). • “A second key finding is that the effectiveness of training varies with the characteristics of participants and the type of training” (Card et. al. 2007). • Context specific challenges • Focused on high poverty and backward districts • Large youth population with low education attainment and past school going age • Limited supply side capacity with virtual absence of private sector trainers

  8. Opportunities • Tremendous opportunity to learn about design of effective jobs training programs • Given scale and diversity of interventions • Because we know little about…. • How best to boost human capital for those not on the academic schooling track(IGC website) • Returns to private-sector training (Heckman 2003) • Relative gains associated with different types of interventions (job search, class room, on-job) and different types of participants (Card et. al.2009) • Effects on social and political behavior beyond labor market outcomes (Heckman 2003)

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