This opinion piece argues that career guidance should be treated as a core human capital policy rather than a peripheral 'soft' add-on. Drawing from a randomized controlled trial with roughly 6,000 grade 12 students across 45 low-cost schools in a North Indian city, the article shows that a classroom-embedded, facilitator-led career exploration program shifted how young women plan their school-to-work transitions, increasing intentions to take entrance exams and pursue interest-aligned careers. The effects worked mainly through improved information and relatable role models, not raised aspirations. While planning changed, labor market outcomes did not yet follow, underscoring that guidance complements, not replaces, demand-side reforms. The opinion piece is based on research published in the Journal of Development Economics (Volume 179).
Anke Hoeffler
