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Estimating the Effect of Vocational Training on Unemployment Duration in West Germany: A Discrete Hazard Rate Model with Instrumental Variables

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Author Info

  • Reinhard Hujer
  • Kai-Oliver Maurer
  • Marc Wellner

    (Uni Frankfurt/M)

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    Abstract

    This paper is concerned with the effect of vocational training on individual unemployment duration in West Germany. The database used in this study is the German Socio-Economic Panel (GSOEP) for West Germany for the period from 1984 to 1994. The econometric model is a semi-parametric single risk discrete time duration model. To take into account a possible selection bias, an instrumental variable for actual participation in vocational training is used. This instrumental variable is the predicted participation propensity obtained by estimating a probit model for the participation in vocational training measures. The main results show that prior participation does have a significant effect on the reduction of unemployment duration in the short run. However, this effect does not persist in the long run.

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    Bibliographic Info

    Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

    Volume (Year): 218 (1999)
    Issue (Month): 5+6 (May)
    Pages: 619-646

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    Handle: RePEc:jns:jbstat:v:218:y:1999:i:5-6:p:619-646

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    Related research

    Keywords: discrete hazard models; vocational training; selection bias; instrumental variables;

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    Cited by:
    1. Girma, Sourafel & Görg, Holger, 2003. "Blessing or Curse? Domestic Plants' Survival and Employment Prospects after Foreign Acquisitions," IZA Discussion Papers 706, Institute for the Study of Labor (IZA).
    2. Rabe, Birgitta, 2000. "Wirkungen aktiver Arbeitsmarktpolitik: Evaluierungsergebnisse für Deutschland, Schweden, Dänemark und die Niederlande ; Gutachten im Auftrag des Bundeskanzleramtes für die Benchmarking-Gruppe des B," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 00-208, Social Science Research Center Berlin (WZB).

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