The contribution of vocational training to employment, job-related skills and productivity: evidence from Madeira


  • We are indebted to the Direcção Regional de Formação Profissional in Madeira and, particularly, to Maria João Freitas and Ricardo Figueira for providing the dataset. We thank seminar participants at the European Research Network on Transition in Youth Conference Workshop.

Santiago Budría, Assistant Professor, Department of Economics, University Pablo de Olavide, Ctra. Utrera km. 1, 41013 Sevilla, Spain. Email:


In this paper, we analyse the transition to the labor market of participants in vocational training in Madeira in Portugal. The analysis is in two stages. First, we investigate how the employment status at different dates (1 month, 1 year, and 2 years after the completion of the training program) depends on relevant variables, such as age, gender, education and the content and duration of the training. Second, we use individuals' self-assessment of the effectiveness of the training program along three dimensions: employment, job-related skills and productivity. The respondents score training activities high on every dimension. Moreover, we find that training is more effective among the educated, indicating that vocational training is far from being remedial. We also find that long training programs and training related to tourism are particularly effective.