Abstract

The process of technological change brings significant challenges to societies. While private sector organizations seek to include new technologies in their production processes, individuals and government agencies look for possibilities for adaptation. In the context of highly unequal countries such as those in Latin America, the way the adaptation occurs can play a significant role in social mobility and family wealth creation. As the literature suggests, one of the essential policy tools to cope with changes in the labor market lies in job training policies. In this article, I assess the effectiveness of the Chilean training system, focusing on how training affects wages. Using the Casen household survey and the Social Protection Survey longitudinal versions, I estimate a training skill premium near 11%. While the different data sources show that job training has an effect, differentiation of this effect lies with the decision maker in the training process.