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Poverty and heterogeneous impacts of youth employment policies: the case in Peru

This study examines the relationship between household poverty and the impact of active policies to promote employment in Peru. In particular, we analyze the Youth Training Program PROJOVEN , that since 1996, has directly benefited over 50,000 poor youths. The poverty of the beneficiaries of PROJOVEN is approximated with an index based on 21 household assets. Three main results emerge. First, demographic and socio-economic inequalities found among the beneficiaries and the eligible population are mainly due to individual decisions of young people rather than administrative decisions of the operator of the program. Second, there is high heterogeneity in the distribution of impacts by income quantiles and strong differences in the distribution of impacts between men and women. Third, the heterogeneity of impacts can not be explained by the poverty of beneficiaries. The poorest of the poor benefit from the program as the least poor. Is the entity that provides training services (quality) that explains the heterogeneity of impacts.

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