Skills Training for Advancing Resources (STAR)

Context

In Bangladesh, high poverty levels and low educational attainment limit youth employment prospects. Despite several government and non-governmental education initiatives, school dropout rates are high. As of 2015–16, nearly 10% of youth aged between 15 and 19 were unemployed, with school dropout rates reaching 20% in primary and 40% in secondary education. Underprivileged youth who drop out of school lack both proper education and practical experience to find productive employment. Many of these youth, especially from low-income families, remain trapped in informal, low-paying, or no jobs, with women particularly affected.

Solution

Launched in 2012, BRAC’s Skills Training for Advancing Resources (STAR) program equips vulnerable youth who have dropped out of school with market-relevant skills. It provides six months of structured training through a dual model: five days a week of on-the-job apprenticeships with local master craftspersons (MCPs) and one day a week of classroom-based training on trade-specific theory and soft skills such as financial literacy and communication. It targets school dropouts aged 14–18 from low-income households (monthly per capita income under BDT 3,000) who have been out of school for at least a year. BRAC field staff identify eligible youth through community outreach around their branch offices. BRAC matches trainees to trades based on preferences and local demand, offers travel stipends and job placement support, and encourages gender inclusion and support for youth with disabilities. Training covers trades like tailoring, AC/fridge repair, graphics design, and beauty services. The program has expanded nationwide through branch offices and maintains a strong presence in both urban and rural areas.

Impact

On-the-job training significantly increased labor market participation (by 31 percentage points short-term) and shifted youth into more stable, better-paid wage employment. Although the effect declined over time, long-term income gains remained positive (BDT 799/month). Combined training showed modest long-term gains but was not cost-effective. The benefit-cost ratio of 1.48 for on-the-job training suggests that STAR can be scaled sustainably, especially through its focus on linking apprentices to firms with active labour demand. The program has proven effective in helping disadvantaged youth transition out of informal, low-productivity work.

Analysis

STAR addresses critical barriers faced by disadvantaged youth in Bangladesh, including lack of formal education, limited access to practical training, and exclusion from productive employment. By targeting school dropouts and combining locally relevant trades with structured mentorship, the program creates pathways out of informal, low-paying work. Its strong community-based selection process and partnerships with local craftspersons ensure cultural fit and relevance.

The model is replicable in other low-income contexts facing youth unemployment, provided there is an intermediary like BRAC to facilitate coordination and oversight. Its scalability is supported by a favorable benefit-cost ratio (1.48) for the on-the-job component, which generates sustained employment and income gains. However, successful scalability and replicability depend on the availability of qualified MCPs, committed field staff, and long-term funding. The program’s success underscores the value of demand-driven, decentralized skill development models in contexts with weak formal job markets.