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Vocational Training: Does it speed up the Transition Rate out of Unemployment ?

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  • Cockx, Bart

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

  • Bardoulat, Isabelle

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

In this paper we estimate, for the 1989-93 period in Belgium, the effect of vocational classroom training on the rate of transition out of unemployment. We show that rationing of the demand for training increases the unemployment duration of non-participants, an effect neglected in programme evaluations. We propose a “control function” estimator accounting for variable treatment effects and identifying the average treatment effect on the treated by means of exogenous sub-regional variation in the training capacities. During participation, the transition rate decreases by 27%. Afterwards it increases by 62%. Making training available for a broader population would, however, reduce the effectiveness of the programme.

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Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 1999032.

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Length: 41
Date of creation: 01 Nov 1999
Date of revision:
Handle: RePEc:ctl:louvir:1999032

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Keywords: Vocational training; evaluation; transition models; job-search;

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Cited by:
  1. Bruno CREPON & Marc FERRACCI & Denis FOUGERE, 2012. "Training the Unemployed in France : How Does it Affect Unemployment Duration and Recurrence ?," Annales d'Economie et de Statistique, ENSAE, issue 107-108, pages 7.
  2. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection Discussion Papers 29142, The World Bank.
  3. Cockx, Bart, 1999. "The Design of Active Labour Market Policies. What Matters and What Doesn't ?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 1999035, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  4. Van der Linden, Bruno & Dor, Eric, 2001. "Labor Market Policies and Equilibrium Employment : Theory and Application for Belgium," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2001005, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  5. Eric Dor & Bruno Van der Linden, 2001. "Allocations, sanctions et formations : leur impact sur la formation des salaires et le taux de sortie du chômage," Reflets et perspectives de la vie économique, De Boeck Université, De Boeck Université, vol. 0(1), pages 117-131.
  6. repec:iab:iabzaf:v:38:i:2/3:p:396-418 is not listed on IDEAS
  7. Bruno Van der Linden & Eric Dor, 2003. "The net effect of unemployment benefits, sanctions and training on regular employment," Working Papers 2003-ECO-01, IESEG School of Management.
  8. Viktor Steiner & Tobias Hagen, 2002. "Was kann die Aktive Arbeitsmarktpolitik in Deutschland aus der Evaluationsforschung in anderen europäischen Ländern lernen?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, Verein für Socialpolitik, vol. 3(2), pages 189-206, 05.
  9. Van der Linden, Bruno & Dor, Eric, 1998. "The net effect of unemployment benefits, sanctions and training on aggregate unemployment outflows," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2000020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 07 Sep 2000.
  10. 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.

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