Determinants of dropout behaviour in a job training programme for disadvantaged youth

A general conclusion of the youth job training programme (YJTP) evaluationliterature is that these programmes are more effective when completed. Yet,YJTPs suffer from substantial dropout problems. This paper studies the extent ofthe dropout phenomenon and under which circumstances dropout is more likelyamong the participants of the YJTP Projoven-Peru. Projoven follows a two-stepsequence design: a classroom training phase, which practically all candidatescomplete, and an internship, which is not offered to all. Controlling for potentialselection into internship, we find that regional differences and internshipconditions affect the dropout likelihood. We also distinguish between twodifferent exit routes compared with training completion: i) dropping out oftraining for a job and ii) dropping out of training into unemployment orinactivity. Our estimates suggest that trainees who are male and have prior workexperience are less likely to drop out into unemployment, but more likely todrop out for another job.