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Do the skilled and prime-aged unemployed benefit more from training? Effect heterogeneity of public training programmes in Germany

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  • Ulf Rinne
  • Marc Schneider
  • Arne Uhlendorff

Abstract

This study analyses the treatment effects of public training programmes for the unemployed in Germany. Based on propensity score matching methods, we extend the picture that has been sketched in previous studies by estimating the treatment effects of medium-term programmes for different skill and age groups. Our results indicate that programme participation has a positive impact on employment probabilities and earnings for almost all sub-groups. We find little evidence for the presence of heterogeneous treatment effects, and the magnitude of the differences is quite small. Our results thus - at least in part - conflict with the strategy to provide training increasingly to individuals with better employment prospects.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 43 (2011)
Issue (Month): 25 ()
Pages: 3465-3494

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Handle: RePEc:taf:applec:v:43:y:2011:i:25:p:3465-3494

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References

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  1. Mueser, Peter R. & Troske, Kenneth & Gorislavsky, Alexey, 2003. "Using State Administrative Data to Measure Program Performance," IZA Discussion Papers 786, Institute for the Study of Labor (IZA).
  2. Michael Lechner & Blaise Melly, 2007. "Earnings Effects of Training Programs," University of St. Gallen Department of Economics working paper series 2007 2007-28, Department of Economics, University of St. Gallen.
  3. Biewen, Martin & Fitzenberger, Bernd & Osikominu, Aderonke & Waller, Marie, 2007. "Which Program for Whom? Evidence on the Comparative Effectiveness of Public Sponsored Training Programs in Germany," IZA Discussion Papers 2885, Institute for the Study of Labor (IZA).
  4. Völter, Robert & Osikominu, Aderonke & Fitzenberger, Bernd, 2007. "Get Training or Wait? Long-Run Employment Effects of Training Programs for the Unemployed in West Germany," ZEW Discussion Papers 06-39 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Reinhard Hujer & Stephan Thomsen & Christopher Zeiss, 2006. "The effects of vocational training programmes on the duration of unemployment in Eastern Germany," AStA Advances in Statistical Analysis, Springer, vol. 90(2), pages 299-321, June.
  6. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
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  8. Conny Wunsch & Michael Lechner, 2007. "What Did All the Money Do? On the General Ineffectiveness of Recent West German Labour Market Programmes," University of St. Gallen Department of Economics working paper series 2007 2007-19, Department of Economics, University of St. Gallen.
  9. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
  10. Werner Eichhorst & Klaus F. Zimmermann, 2007. "And Then There Were Four...How Many (and Which) Measures of Active Labor Market Policy Do We Still Need?," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 53(3), pages 243-272.
  11. Lechner, Michael & Miquel, Ruth & Wunsch, Conny, 2005. "The Curse and Blessing of Training the Unemployed in a Changing Economy: the Case of East Germany after Unification," CEPR Discussion Papers 5171, C.E.P.R. Discussion Papers.
  12. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, 02.
  13. Lechner, Michael, 1999. "Earnings and Employment Effects of Continuous Off-the-Job Training in East Germany after Unification," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(1), pages 74-90, January.
  14. Marco Caliendo & Viktor Steiner, 2005. "Aktive Arbeitsmarktpolitik in Deutschland: Bestandsaufnahme und Bewertung der mikroökonomischen Evaluationsergebnisse," Discussion Papers of DIW Berlin 515, DIW Berlin, German Institute for Economic Research.
  15. Ours, J.C. van, 2004. "The locking-in effect of subsidized jobs," Open Access publications from Tilburg University urn:nbn:nl:ui:12-140882, Tilburg University.
  16. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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Citations

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Cited by:
  1. Caliendo, Marco & Hogenacker, Jens, 2012. "The German Labor Market after the Great Recession: Successful Reforms and Future Challenges," IZA Discussion Papers 6810, Institute for the Study of Labor (IZA).
  2. Brück-Klingberg, Andrea & Burkert, Carola & Garloff, Alfred & Seibert, Holger & Wapler, Rüdiger, 2011. "Does higher education help immigrants find a job? : A survival analysis," IAB Discussion Paper 201106, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Bernhard, Sarah & Hohmeyer, Katrin & Jozwiak, Eva & Koch, Susanne & Kruppe, Thomas & Stephan, Gesine & Wolff, Joachim, 2008. "Aktive Arbeitsmarktpolitik in Deutschland und ihre Wirkungen," IAB-Forschungsbericht 200802, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  4. Andersen, Signe Hald, 2011. "Exiting unemployment: How do program effects depend on individual coping strategies?," Journal of Economic Psychology, Elsevier, vol. 32(2), pages 248-258, March.
  5. Stephan, Gesine & Zickert, Kathi, 2008. "Participation of unemployment benefit recipients in active labor market programs : before and after the German labor market reforms," IAB Discussion Paper 200815, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  6. Begoña Cueto & Luis Toharia & Carlos García Serrano & Joan A. Alujas, 2010. "Los efectos de la formación ocupacional: ¿Importa la duración de las acciones?," Hacienda Pública Española, IEF, vol. 195(4), pages 9-36, december.
  7. Gerd Heyer & Susanne Koch & Gesine Stephan & Joachim Wolff, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011," Journal of Labour Market Research, Springer, vol. 45(1), pages 41-62, March.
  8. Ulf Rinne & Arne Uhlendorff & Zhong Zhao, 2013. "Vouchers and caseworkers in training programs for the unemployed," Empirical Economics, Springer, vol. 45(3), pages 1089-1127, December.
  9. Tyrowicz, Joanna, 2009. "When Eastern Labour Markets Enter Western Europe CEECs. Labour Market Institutions upon Euro Zone Accession," MPRA Paper 15045, University Library of Munich, Germany.
  10. Badescu, Mircea & Garrouste, Christelle & Loi, Massimo, 2012. "The distribution of adult training among European unemployed: Evidence from recent surveys," MPRA Paper 49960, University Library of Munich, Germany.
  11. Kai Sebastian Meinke, 2010. "Employment and Continuing Vocational Training (CVT) in the German Microcensus of the Year 2003," Kiel Working Papers 1643, Kiel Institute for the World Economy.
  12. Bernhard, Sarah & Kruppe, Thomas, 2012. "Effectiveness of further vocational training in Germany : empirical findings for persons receiving means-tested unemployment benefit," IAB Discussion Paper 201210, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  13. Paul, Marie & Dörr, Annabelle & Fitzenberger, Bernd & Kruppe, Thomas & Strittmatter, Anthony, 2013. "The Award of a Training Voucher and Labor Market Outcomes," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79918, Verein für Socialpolitik / German Economic Association.
  14. Stephan, Gesine & Pahnke, André, 2008. "The Relative Effectiveness of Selected Active Labour Market Programmes and the Common Support Problem," IZA Discussion Papers 3767, Institute for the Study of Labor (IZA).
  15. Krause, Annabelle & Rinne, Ulf & Schüller, Simone, 2012. "Kick It Like Özil? Decomposing the Native-Migrant Education Gap," IZA Discussion Papers 6696, Institute for the Study of Labor (IZA).
  16. Waller, Marie, 2008. "Further training for the unemployed : what can we learn about dropouts from administrative data?," FDZ Methodenreport 200804_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  17. Floreani, Vincent Arthur, 2014. "Fixing Europe's youth unemployment and skills mismatch, can public financial support to SMEs be effective? The case of the European Commission and European Investment Bank joint initiatives," MPRA Paper 55849, University Library of Munich, Germany.

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