Evidence from Uganda shows both vocational training and within-firm training help workers find better-paid jobs, but with crucial differences
As millions enter the job market in sub-Saharan Africa, the key to welfare is whether these young people can find good jobs. Two contrasting approaches to the job-matching process are vocational training and within-firm training. Professor Oriana Bandiera, from LSE, discusses the implications of a three-year long study in Uganda. We see that both vocational training and within-firm training help workers find better-paid jobs. However, there are crucial differences. Within-firm training helps workers find a job immediately, but if they lose this job they are unlikely to find a new one. By contrast, vocational training helps workers find better jobs over time.