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Partial Idendification of Wage Effects of Training Programs

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Abstract

In an evaluation of a job-training program, the influence of the program on the in-dividual wages is important, because it reflects the program effect on human capital. Esti-mating these effects is complicated because we observe wages only for employed individuals, and employment is itself an outcome of the program. Only usually implausible assumptions allow identifying these treatment effects. Therefore, we suggest weaker and more credible assumptions that bound various average and quantile effects. For these bounds, consistent, nonparametric estimators are proposed. In a reevaluation of a German training program, we find that a considerable improvement of the long-run potential wages of its participants.

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Bibliographic Info

Paper provided by Brown University, Department of Economics in its series Working Papers with number 2010-8.

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Date of creation: 2010
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Handle: RePEc:bro:econwp:2010-8

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Postal: Department of Economics, Brown University, Providence, RI 02912

Related research

Keywords: Bounds; treatment effects; causal effects; program evaluation;

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References

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  1. Blundell, Richard William & Gosling, Amanda & Ichimura, Hidehiko & Meghir, Costas, 2004. "Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds," CEPR Discussion Papers 4705, C.E.P.R. Discussion Papers.
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  4. Osikominu, Aderonke & Fitzenberger, Bernd & Völter, Robert, 2006. "Get Training or Wait? Long-Run Employment Effects of Training Programs for the Unemployed in West Germany," ZEW Discussion Papers 06-39, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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  9. van Ours, Jan C, 2002. "The Locking-in Effect of Subsidized Jobs," CEPR Discussion Papers 3489, C.E.P.R. Discussion Papers.
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  11. David S. Lee, 2009. "Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects," Review of Economic Studies, Oxford University Press, vol. 76(3), pages 1071-1102.
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Citations

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Cited by:
  1. Huber, Martin & Melly, Blaise, 2011. "Quantile Regression in the Presence of Sample Selection," Economics Working Paper Series 1109, University of St. Gallen, School of Economics and Political Science.
  2. Michael Lechner & Benjamin Schünemann & Conny Wunsch, 2013. "Do Long-term Unemployed Workers Benefit from Targeted Wage Subsidies?," Working papers 2013/14, Faculty of Business and Economics - University of Basel.
  3. Giovanni Mellace & Roberto Rocci, 2011. "Principal Stratification in sample selection problems with non normal error terms," CEIS Research Paper 194, Tor Vergata University, CEIS, revised 02 May 2011.
  4. Blanco, German & Flores, Carlos A. & Flores-Lagunes, Alfonso, 2011. "Bounds on Average and Quantile Treatment Effects of Job Corps Training on Wages," IZA Discussion Papers 6065, Institute for the Study of Labor (IZA).
  5. Bampasidou, Maria & Flores, Carlos A. & Flores-Lagunes, Alfonso, 2011. "Unbundling the Degree Effect in a Job Training Program for Disadvantaged Youth," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103619, Agricultural and Applied Economics Association.
  6. Martin Huber & Blaise Melly, 2012. "A test of the conditional independence assumption in sample selection models," Working Papers 2012-11, Brown University, Department of Economics.

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