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Earnings Effects of Training Programs

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Author Info
Michael Lechner () (SIAW, University of St. Gallen, CEPR, ZEW, PSI, IAB and IZA)
Blaise Melly () (SIAW, University of St. Gallen)

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Abstract

In an evaluation of a job-training program, the influence of the program on the individual earnings capacity is important, because it reflects the program effect on human capital. Estimating these effects is complicated because earnings are observed for employed individuals only, and employment is itself an outcome of the program. Point identification of these effects can only be achieved by usually implausible assumptions. Therefore, weaker and more credible assumptions are suggested that bound various average and quantile effects. For these bounds, consistent, nonparametric estimators are proposed. In a reevaluation of Germany's training programs of 1993 and 1994, we find that the programs considerably improve the long-run earnings capacity of its participants.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2926.

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Length: 52 pages
Date of creation: Jul 2007
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Handle: RePEc:iza:izadps:dp2926

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Related research
Keywords: bounds treatment effects causal effects program evaluation

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Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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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.:
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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. Nuria Rodriguez-Planas† & Jacob Benus, 2007. "Evaluative Active Labor Market Programmes in Romania," Working Papers 2007-31, FEDEA. [Downloadable!]
  2. Michael Lechner & Stephan Wiehler, 2007. "Does the Order and Timing of Active Labor Market Programs Matter?," IZA Discussion Papers 3092, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Lechner, Michael & Wiehler, Stephan, 2007. "Does the Order and Timing of Active Labour Market Programmes Matter?," CEPR Discussion Papers 6521, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Ulf Rinne & Marc Schneider & Arne Uhlendorff, 2007. "Too Bad to Benefit? : Effect Heterogeneity of Public Training Programs," Discussion Papers of DIW Berlin 749, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
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