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improved by combining with counseling, but the contribution of counseling to business or financialtraining is weak or negative.Duration of training programs when considered with the quadratic form shows that therelationship between the likelihood of success and duration of programs is U-shaped. The optimallength of training may vary by the outcomes of interest and programs’ objectives. Given that theduration of the program may not capture the intensity or quality of training, caution is needed tointerpret the results. Finally, the effects of training generally tend to fade out as the period betweencompletion of intervention and endline survey becomes longer.Table 8 presents results for financing programs with the same model except for the type ofinterventions. We disaggregate estimates from financing programs into microcredit and grants as“stand-alone” programs, grants combined with training, microcredit combined with training, andfinancing (either microcredit or grants) combined with counseling. 33 The impacts of financingprograms seem less heterogeneous than those of training intervention. Microcredit either combinedwith training or stand-alone yields larger effects compared to other financing support. The timeinterval between intervention and end-line survey is much longer for financing than training, andunlike training, longer interval is more associated with higher chances of success, suggesting that ittakes time for the use of loan to emerge as changed outcomes.5.3. Regressions on Sub-Sample by Outcome GroupsPooling all estimates doesn’t allow us to examine which are the determinants of program successfor each particular outcome of interest, if the determinants of success differ by the outcomes. Aparticular intervention may be more frequently used and relevant for one outcome than the other,and its effectiveness an also vary by the outcome measures. 34 Moreover, the effects of covariateson the effect size may be specific to the outcome of interest. For instance, youth may benefit morefrom interventions in improving labor market outcomes than changing saving behavior. Separately33 Given that only four observations from one study combine microcredit with counseling (information session) withouttraining (De Mel et al, 2011), we merge microcredit and grants when combined with counseling.34 Recall the distribution of intervention type by outcome classification (Table A3 in Appendix). Vocational training iscommonly used to improve labor market activities and income but rarely for business outcomes unless combined withfinancing. Business and financial training tends to focus more on financial behavior and business outcomes, but oftenare addressed to labor market activities combined with counseling. While microfinance is widely used to improve allthe outcomes considered here, it is more directed to labor market outcomes when combined with counseling.18
examining the sample according to the six outcome groups reduces heterogeneity across outcomestypes and provides information specific on the outcome of interest. 35The rest of section discusses the effectiveness of programs separately for differentoutcomes. A few findings are worth mentioning. For nearly all outcomes, youth seems to behighly associated with program success, suggesting a great need to provide targeted intervention forthem. Impacts on women are particularly large only for attitudes, indicating these types ofintervention are useful for female empowerment but may not be sufficient to address variousbarriers faced by women. Increases in earnings especially among youth and those with highereducation seem to be due in part to improving business performance.5.2.1. Labor Market OutcomesTable 9 presents the results from random effects models of effect sizes estimated on the labormarket activities and income in Panel A and B respectively. In each panel, the first row shows theoverall effects of the following interventions relevant for labor market outcomes: business training(including financial training), vocational training, and financing (grants and microcredit) regardlessof provision of counseling service (regression results of the corresponding RE model are presentedin Table A4 in Appendix). The subsequent rows present the heterogeneous impacts of eachintervention along the type of beneficiaries and country typology 36 (not shown in the table). Thetable presents the coefficients of the interaction terms between intervention and population groups,showing the incremental effects of each intervention in improving labor market activities for eachbeneficiaries group.Overall, vocational training and financing are found to be more effective to improve labormarket activities compared to business training. In particular, for female and youth, the goal of35 However, it has to be noted that some heterogeneity in outcome still remains within outcome groups as even similaroutcomes may be measured differently in different studies (this is where the random effects model assumption rests) orsometimes different outcomes are mapped to the same outcome group. For example, the “business performance”includes diverse variables such as sales and capital stock, while the “labor market income” is more homogeneousincluding personal earning and profits for existing micro-entrepreneurs.36 The typology of countries is adopted from the 2013 World Development Report on Jobs. Youth bulging countriesinclude Bosnia and Herzegovina, Colombia, Dominican Republic, Indonesia, South Africa, and Tunisia; Urbanizingcountries include Bangladesh, Bosnia and Herzegovina, Guatemala, Ghana, India, Indonesia, Malawi, and Pakistan;Formalizing countries include many Latin American countries, such as Argentina, Chile, Colombia, El Salvador, Peru,Nicaragua, and Mexico; Philippines; Sri Lanka; and Tunisia; Agrarian countries include Bangladesh, India, Kenya,Malawi, Pakistan, Sri Lanka, Tanzania, and Uganda; and Fragile states include Bosnia and Herzegovina in our study.Note that the typology of countries is not mutually exclusive.19
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