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Evaluating the Dynamic Employment Effects of Training Programs in East Germany Using Conditional Difference-in-Differences

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  • Bergemann, Annette

    ()
    (University of Mannheim)

  • Fitzenberger, Bernd

    ()
    (University of Freiburg)

  • Speckesser, Stefan

    ()
    (University of Westminster)

Abstract

This study analyzes the employment effects of training in East Germany. We propose and apply an extension of the widely used conditional difference-in-differences evaluation method. Focusing on transition rates between nonemployment and employment we take into account that employment is a state dependent process. Our results indicate that using transition rates is more appropriate and informative than using unconditional employment rates as commonly done in the literature. Training as a first participation in a program of Active Labor Market Policies shows zero to small positive effects both on reemployment probabilities and on probabilities of remaining employed with notable variation over the different start dates of the program.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1848.

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Length: 87 pages
Date of creation: Nov 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1848

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Related research

Keywords: Ashenfelter's Dip; nonparametric matching; evaluation of active labor market policy in East Germany; employment dynamics; conditional difference-in-differences; bootstrap;

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References

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  4. Fitzenberger, Bernd & Speckesser, Stefan, 2005. "Employment Effects of the Provision of Specific Professional Skills and Techniques in Germany," ZEW Discussion Papers 05-77, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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  21. Florian Kraus & Patrick Puhani & Viktor Steiner, 1999. "Employment Effects of Publicly Financed Training Programs - The East German Experience," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 219(1+2), pages 216-248, July.
  22. 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.
  23. Robert G. Fay, 1996. "Enhancing the Effectiveness of Active Labour Market Policies: Evidence from Programme Evaluations in OECD Countries," OECD Labour Market and Social Policy Occasional Papers 18, OECD Publishing.
  24. James J. Heckman & Jeffrey A. Smith, 1999. "The Pre-Program Earnings Dip and the Determinants of Participation in a Social Program: Implications for Simple Program Evaluation Strategies," NBER Working Papers 6983, National Bureau of Economic Research, Inc.
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