Evidence from Uganda suggests that vocational training is more effective in tackling youth unemployment than apprenticeships
Youth unemployment continues to remain a key policy challenge across the developing world. Imran Rasul analyses two potential solutions to tackle this problem: vocational training and apprenticeships through wage subsidy programmes. A randomised controlled trial in Uganda reveals that both interventions led to a rise in earnings for workers, but vocational training had a larger positive effect. The difference can be explained by the positive signalling effect from vocational training.