Arbeitspapier

Signaling worker quality in a developing country: Lessons from a certification program

We evaluate the returns to signaling occupation-specific skills using unique administrative data from a nationwide certification program in Colombia. The program certifies skills and issues three certificates: basic, intermediate, and advanced. We use regression discontinuity methods to compare workers' earnings around certificateassignment thresholds. Signaling advanced occupation-specific skills yields significant returns: 9.7%, on average, within two years of certification. Instead, we find no effects from signaling basic or intermediate occupation-specific skills. Our analysis reveals that the primary mechanism behind the observed income effects associated with the advanced certificate is the ability to signal occupation-specific skills to potential employers.

Language
Englisch

Bibliographic citation
Series: Working Paper Series ; No. 69

Classification
Wirtschaft
Labor Economics: General
Wage Level and Structure; Wage Differentials
Professional Labor Markets; Occupational Licensing

Event
Geistige Schöpfung
(who)
Mancino, M. Antonella
Morales, Leonardo Fabio
Salazar, Diego F.
Event
Veröffentlichung
(who)
University of Waterloo, Canadian Labour Economics Forum (CLEF)
(where)
Waterloo
(when)
2024

Last update
10.03.2025, 11:45 AM CET

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Object type

  • Arbeitspapier

Associated

  • Mancino, M. Antonella
  • Morales, Leonardo Fabio
  • Salazar, Diego F.
  • University of Waterloo, Canadian Labour Economics Forum (CLEF)

Time of origin

  • 2024

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