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Too Bad to Benefit?: Effect Heterogeneity of Public Training Programs

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Author Info
Ulf Rinne
Marc Schneider
Arne Uhlendorff

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Abstract

This study analyzes the treatment effects of public training programs for the unemployed in Germany. Based on propensity score matching methods we extend the picture that has been sketched in previous studies by estimating treatment effects of medium-term programs for different sub-groups with respect to vocational education and age. Our results indicate that program participation has a positive impact on employment probabilities for all sub-groups. Participants also seem to find more often higher paid jobs than non-participants. However, we find only little evidence for the presence of heterogeneous treatment effects, and the magnitude of the differences is quite small. Our results are thus - at least in part - conflicting with the strategy to increasingly provide training to individuals with better employment prospects.

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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 749.

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Length: 43 p.
Date of creation: 2007
Date of revision:
Handle: RePEc:diw:diwwpp:dp749

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Related research
Keywords: Program Evaluation; Active Labor Market Policy; Effect Heterogeneity; Public Training Programs; Matching;

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Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Martin Biewen & Bernd Fitzenberger & Aderonke Osikominu & Marie Waller, 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). [Downloadable!]
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  2. van Ours, Jan C., 2004. "The locking-in effect of subsidized jobs," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 37-55, March. [Downloadable!] (restricted)
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  3. 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. [Downloadable!]
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  4. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Human Capital and Productivity Project Working Papers 20035, University of Western Ontario, CIBC Human Capital and Productivity Project. [Downloadable!]
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  5. Lechner, Michael & Melly, Blaise, 2007. "Earnings Effects of Training Programs," CEPR Discussion Papers 6400, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. 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 Labour Market Policy Evaluation. [Downloadable!]
  7. 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.
  8. Alberto Abadie & Guido W. Imbens, 2006. "On the Failure of the Bootstrap for Matching Estimators," NBER Technical Working Papers 0325, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Bernd Fitzenberger & Aderonke Osikominu & Robert Völter, 2006. "Get Training or Wait? Long-Run Employment Effects of Training Programs for the Unemployed in West Germany," IZA Discussion Papers 2121, Institute for the Study of Labor (IZA). [Downloadable!]
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  10. Michael Lechner & Ruth Miquel & Conny Wunsch, 2007. "The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification," German Economic Review, Blackwell Publishing, vol. 8, pages 468-509, November. [Downloadable!] (restricted)
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  11. 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. [Downloadable!] (restricted)
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  12. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Blackwell Publishing, vol. 22(1), pages 31-72, 02. [Downloadable!] (restricted)
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  13. Peter R. Mueser & Kenneth R. Troske & Alexey Gorislavsky, 2007. "Using State Administrative Data to Measure Program Performance," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 761-783, 09. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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]. [Downloadable!]
  2. 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]. [Downloadable!]
  3. 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). [Downloadable!]
  4. 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]. [Downloadable!]
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