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Long-Run Effects of Training Programs for the Unemployed in East Germany

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  • Fitzenberger, Bernd

    ()
    (University of Freiburg)

  • Völter, Robert

    ()
    (Goethe University Frankfurt)

Abstract

Public sector sponsored training was implemented at a large scale during the transition process in East Germany. Based on new administrative data, we estimate the differential effects of three different programs for East Germany during the transition process. We apply a dynamic multiple treatment approach using matching based on inflows into unemployment. We find positive medium- and long-run employment effects for the largest program, Provision of Specific Professional Skills and Techniques. In contrast, the programs practice firms and retraining show no consistent positive employment effects. Furthermore, no program results in a reduction of benefit recipiency and the effects are quite similar for females and males.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2630.

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Length: 37 pages
Date of creation: Feb 2007
Date of revision:
Publication status: published in: Labour Economics, 2007, 14 (4), 730-755
Handle: RePEc:iza:izadps:dp2630

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Keywords: training programs; multiple treatments; East Germany;

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  1. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  2. Fredriksson, Peter & Johansson, Per, 2002. "Program evaluation and random program starts," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2003:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. Michael Lechner, 2000. "An Evaluation of Public-Sector-Sponsored Continuous Vocational Training Programs in East Germany," Journal of Human Resources, University of Wisconsin Press, vol. 35(2), pages 347-375.
  4. Lechner, Michael & Miquel, Ruth & Wunsch, Conny, 2004. "Long-Run Effects of Public Sector Sponsored Training in West Germany," IZA Discussion Papers 1443, Institute for the Study of Labor (IZA).
  5. Michael Lechner & Ruth Miquel & Conny Wunsch, 2005. "The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany after Unification," University of St. Gallen Department of Economics working paper series 2005, Department of Economics, University of St. Gallen 2005-15, Department of Economics, University of St. Gallen.
  6. Fredriksson, Peter & Johansson, Per, 2004. "Dynamic Treatment Assignment – The Consequences for Evaluations Using Observational Data," IZA Discussion Papers 1062, Institute for the Study of Labor (IZA).
  7. Bernd Fitzenberger & Stefan Speckesser, 2007. "Employment effects of the provision of specific professional skills and techniques in Germany," Empirical Economics, Springer, Springer, vol. 32(2), pages 529-573, May.
  8. Fitzenberger, Bernd & Osikominu, Aderonke & Völter, Robert, 2006. "Get training or wait? : long-run employment effects of training programs for the unemployed in West Germany," IAB Discussion Paper, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] 200617, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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  11. 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, IFAU - Institute for Evaluation of Labour Market and Education Policy 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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  13. Annette Bergemann & Bernd Fitzenberger & Stefan Speckesser, 2009. "Evaluating the dynamic employment effects of training programs in East Germany using conditional difference-in-differences," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 24(5), pages 797-823.
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  16. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, Econometric Society, vol. 71(5), pages 1491-1517, 09.
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  18. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 65(2), pages 261-94, April.
  19. Smith, Jeffrey & Todd, Petra, 2005. "Rejoinder," Journal of Econometrics, Elsevier, Elsevier, vol. 125(1-2), pages 365-375.
  20. Schneider, Hilmar & Brenke, Karl & Kaiser, Lutz C. & Steinwede, Jacob & Jesske, Birgit & Uhlendorff, Arne, 2006. "Report No. 7: Evaluation der Maßnahmen zur Umsetzung der Vorschläge der Hartz-Kommission - Bericht 2005," IZA Research Reports, Institute for the Study of Labor (IZA) 7, Institute for the Study of Labor (IZA).
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  22. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment?," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 17(35), pages 409-448, October.
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