Massive Open Online Courses and Labor Market Outcomes: Evidence from Colombia

Abstract This paper studies the impact of MOOC certificates on labor market outcomes using a Coursera initiative that offered free certificates during the COVID-19 pandemic. Although eligibility for free certificates was randomized, course completion rates were low-only 6.2% of eligible participants completed at least one course-so we rely on an event-study design to estimate the effects of receiving a certificate. The results show that MOOC certificates increases formal employment by about 5 percentage points, with larger impacts among participants who were not employed at baseline and those from low-income households, and no clear differences by gender. These gains are concentrated in employment at larger firms and in economic sectors aligned with the course content. Overall, while MOOCs have the potential to improve employment outcomes, additional interventions appear necessary to increase course completion rates.