Labor market effects of a dual-VET apprenticeship: Evidence from Nepal

Abstract

This paper analyzes the labor market effects of a Dual-VET Apprenticeship pilot in Nepal. The formal upper secondary education program usually lasts for two years. The program started in the end of 2019. It ended in spring 2022 after being heavily affected by COVID-19. We analyze labor market outcomes in 2023 and 2024 based on structured phone surveys among applicants of the program. We address endogeneity based on randomization of applicants and discontinuity in application test scores. A large share of non-apprentices enrolls in general upper secondary and tertiary education. Hence, our estimations contrast the program to a control group with relatively high educational attainment. OLS results suggest that the program tends to increase work propensity. Due to missing tertiary vocational education in Nepal, the enrollment of non-apprentices in general education further means that the program tends to decrease education propensity according to OLS results. However, these results do not hold in quasi-experimental estimates. © 2025 The Authors

Keywords

Author Keywords

labor market Nepal Dual VET-Apprenticeship RCT RDD

Index Keywords

Vocational education COVID-19 labor market educational attainment secondary education survey Nepal

Author Affiliations

Center for Labor, ZHAW Zurich University of Applied Sciences, Winterthur, ZH, Switzerland

Chair of Education Systems, ETH Zürich, Zurich, ZH, Switzerland

Funding & Acknowledgements

Eidgenössische Technische Hochschule Zürich, ETH

Funding text 1: The main part of this research was financed by the Chair of Education Systems of the ETH Zurich . We thank the Swiss National Science Foundation and the SDC Nepal for financing part of the research. Ethical approval was obtained from the School of Education of the Kathmandu University on the 22.3.2019. The RCT was registered on the AEA RCT Registry on the 16.9. 2019 with the RCT ID AEARCTR-0004653.; Funding text 2: We thank CTEVT and ENSSURE project for their support in communication and linkage with the apprentices and the host companies for necessary information. ENSSURE is a bilateral project of the Government of Nepal (GoN) and the Government of Switzerland represented by the Swiss Agency for Development and Cooperation (SDC). The Council for Technical Education and Vocational Training (CTEVT) implements the project and Helvetas Nepal is providing technical assistance. We further thank the students for responding to the survey. We also thank J.R. Bajracharya, J. Bolli-Kemper, M.N. Parajuli, N. Poudyal, A. Sharma, and B.K. Thapa for their support.

Direktion für Entwicklung und Zusammenarbeit, SDC

Funding text 1: The main part of this research was financed by the Chair of Education Systems of the ETH Zurich . We thank the Swiss National Science Foundation and the SDC Nepal for financing part of the research. Ethical approval was obtained from the School of Education of the Kathmandu University on the 22.3.2019. The RCT was registered on the AEA RCT Registry on the 16.9. 2019 with the RCT ID AEARCTR-0004653.; Funding text 2: We thank CTEVT and ENSSURE project for their support in communication and linkage with the apprentices and the host companies for necessary information. ENSSURE is a bilateral project of the Government of Nepal (GoN) and the Government of Switzerland represented by the Swiss Agency for Development and Cooperation (SDC). The Council for Technical Education and Vocational Training (CTEVT) implements the project and Helvetas Nepal is providing technical assistance. We further thank the students for responding to the survey. We also thank J.R. Bajracharya, J. Bolli-Kemper, M.N. Parajuli, N. Poudyal, A. Sharma, and B.K. Thapa for their support.

Schweizerischer Nationalfonds zur Förderung der Wissenschaftlichen Forschung, FNS

Funding text 1: The main part of this research was financed by the Chair of Education Systems of the ETH Zurich . We thank the Swiss National Science Foundation and the SDC Nepal for financing part of the research. Ethical approval was obtained from the School of Education of the Kathmandu University on the 22.3.2019. The RCT was registered on the AEA RCT Registry on the 16.9. 2019 with the RCT ID AEARCTR-0004653.; Funding text 2: We thank CTEVT and ENSSURE project for their support in communication and linkage with the apprentices and the host companies for necessary information. ENSSURE is a bilateral project of the Government of Nepal (GoN) and the Government of Switzerland represented by the Swiss Agency for Development and Cooperation (SDC). The Council for Technical Education and Vocational Training (CTEVT) implements the project and Helvetas Nepal is providing technical assistance. We further thank the students for responding to the survey. We also thank J.R. Bajracharya, J. Bolli-Kemper, M.N. Parajuli, N. Poudyal, A. Sharma, and B.K. Thapa for their support.

Kathmandu University, KU

Grant: AEARCTR-0004653

Funding text 1: The main part of this research was financed by the Chair of Education Systems of the ETH Zurich . We thank the Swiss National Science Foundation and the SDC Nepal for financing part of the research. Ethical approval was obtained from the School of Education of the Kathmandu University on the 22.3.2019. The RCT was registered on the AEA RCT Registry on the 16.9. 2019 with the RCT ID AEARCTR-0004653.; Funding text 2: We thank CTEVT and ENSSURE project for their support in communication and linkage with the apprentices and the host companies for necessary information. ENSSURE is a bilateral project of the Government of Nepal (GoN) and the Government of Switzerland represented by the Swiss Agency for Development and Cooperation (SDC). The Council for Technical Education and Vocational Training (CTEVT) implements the project and Helvetas Nepal is providing technical assistance. We further thank the students for responding to the survey. We also thank J.R. Bajracharya, J. Bolli-Kemper, M.N. Parajuli, N. Poudyal, A. Sharma, and B.K. Thapa for their support.

Kathmandu University, KU

Funding text 1: The main part of this research was financed by the Chair of Education Systems of the ETH Zurich . We thank the Swiss National Science Foundation and the SDC Nepal for financing part of the research. Ethical approval was obtained from the School of Education of the Kathmandu University on the 22.3.2019. The RCT was registered on the AEA RCT Registry on the 16.9. 2019 with the RCT ID AEARCTR-0004653.; Funding text 2: We thank CTEVT and ENSSURE project for their support in communication and linkage with the apprentices and the host companies for necessary information. ENSSURE is a bilateral project of the Government of Nepal (GoN) and the Government of Switzerland represented by the Swiss Agency for Development and Cooperation (SDC). The Council for Technical Education and Vocational Training (CTEVT) implements the project and Helvetas Nepal is providing technical assistance. We further thank the students for responding to the survey. We also thank J.R. Bajracharya, J. Bolli-Kemper, M.N. Parajuli, N. Poudyal, A. Sharma, and B.K. Thapa for their support.

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Labor market effects of a dual-VET apprenticeship: Evidence from Nepal

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