Skilling for Income Generation: Assessing the Economic Impact of Punjab’s Youth Training Program

Abstract

 The Skilling Youth for Income Generation (SYIG) program was launched in 2021 by the Punjab Skills Development Fund (PSDF). 
The program was launched across 36 districts of Punjab province. The training provided was split into six broader categories, known as brand pillars. The primary objective was to equip young people with skills to enhance their income outcomes and employment opportunities. The present study aims to evaluate the structural design and demographic dimensions of the program, as well as the impact of these factors on the income of graduates who completed training under different brand pillars. Data on 3,775 graduates were collected from 36 districts in the province of Punjab. A proportionate stratified random sampling method was used to collect the data from graduates. The dependent variable is the log of monthly income, while the independent variables include gender, age, education, a dummy variable for the brand pillars, and geographical zones. It is estimated that female graduates earn 55.7 per 
cent less than male graduates. The graduates who received training under the Mahir (vocational training) and E-Tayyar (digital skills) programs earn 15.1 per cent and 24 per cent higher than those in the Aghaaz (base category). Graduates with tertiary education had a significant income advantage (9.7 per cent), while self-employed individuals outperformed graduates in transitional roles, such as internships and apprenticeships. Graduates from less developed areas earn less compared to those from relatively developed areas. Structural factors must be considered to enhance the income outcomes of the training programs. Entrepreneurship should be fostered to create new job opportunities rather than displacing the existing workers. Enhanced post-training placement services, especially in less developed areas, can lead to better outcomes.