challenges in collecting reliable cost data. As a result, the results should be considered with caution and interpreted as a case study based on a small sample.

The benefits of receiving training are defined solely by lifetime labor market earnings for the purpose of this study. Upon the completion of HS, people choose either to (a) finish schooling and start working, (b) pursue post-secondary TVET, or (c) pursue tertiary education. The base case includes HS graduates who completed Grade 10 (or four years of junior HS).<sup>18</sup> The Labor Force Survey (LFS) administrated by the Philippine Statistics Authority enables the grouping of workers into (a) HS, (b) HS and vocational training, and (c) HS and college, and combines educational attainment and earnings data for these categories.

Despite the limitations, the estimation of an EIRR provides additional information for policy makers. An estimated EIRR can help determine whether the DTS should be scaled up to increase the economic welfare of individual beneficiaries (trainees) net of institutional and training costs.<sup>19</sup>

# IV. Data Used for Analysis and Descriptive Statistics

A tracking survey was conducted to collect information regarding the impact of the DTS on labor market outcomes. The survey was conducted from January to March 2016 in Region III, Region IV-A, and the National Capital Region (NCR). Participants included 958 respondents who enrolled in the DTS or RPs in nine TVIs from the specified regions beginning from 2008. All participants subsequently completed the program.<sup>20</sup> Clustered random sampling was applied to randomly select former trainees from each of the chosen clusters or the TVIs.

The following four criteria are met by the selected TVIs: (a) both the DTS and RPs are in operation within the same institution, (b) trainees are assessed objectively when selected for the DTS, (c) records are maintained under good conditions for several years, and (d) they are located in Region III, Region IV-A, or the NCR.<sup>21</sup> The first condition is essential because the impact of the DTS relative to the RPs is estimated after controlling for institution-specific factors. Careful investigations identified nine TVIs that satisfy the four criteria (Table 2).<sup>22</sup> Any trainees who did not graduate from their program were randomly replaced in the sample. The sampling randomly chose 20 trainees from the DTS and 20 trainees from the RPs within each TVI/enrollment cohort cell. Since the sample excluded those who did not complete their program for various reasons, the findings are conditional on having graduated from a program. As noted

> 18 The impact evaluation study was conducted prior to the implementation of the K-12 Basic Education System in the Philippines. Secondary education in the former system consisted of four years of HS with no distinction between junior (lower) or senior (upper) levels in HS.

> 19 Net subsidies to firms and wages paid to trainees under the DTS are not included in the analysis.

> 20 Those who did not complete the programs in which they initially enrolled were randomly replaced in the sample.

> 21 Historically the DTS was first adopted in Regions 3 and 4A, which accounts for a relatively high number of TVIs that implement the DTS in those regions.

> 22 The survey included the National College of Science and Technology (NCST) in Cavite, but the analysis dropped observations from the NCST because it was later found that the institution only has the DTS. Non-DTS courses were part of their college program, which are not comparable to the DTS.

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