The usage of prospensity score matching method for training Impact evaluation on productivity in Vietnam: the case of small and medium enterprises (SMEs)

Abstract

This paper investigates the determinants of human capital investment in formal training (off-the-job training in short term) and estimates effects of this investment on productivity using Propensity Score Matching (PSM) method. This paper uses the data from two surveys on the small and medium enterprises (SMEs) in Vietnam: SMEs2009 (completed in 2010) and SMEs2011 (completed in 2012) with detailed information about training and firm characteristics. The results found that training has positive impact on the productivity of household business, but there is no evidence about the impact of training on productivity of the firms in formal sector; and there is no impact of training activities on productivity in the near future (one or two years).