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Earnings Effects of Training Programs

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Author Info

  • Lechner, Michael

    ()
    (University of St. Gallen)

  • Melly, Blaise

    ()
    (Brown University)

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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Bibliographic 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
Date of revision:
Handle: RePEc:iza:izadps:dp2926

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Keywords: bounds; treatment effects; causal effects; program evaluation;

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References

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  1. 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 200617, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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Citations

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Cited by:
  1. 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.
  2. Lechner, Michael & Wiehler, Stephan, 2007. "Does the Order and Timing of Active Labor Market Programs Matter?," IZA Discussion Papers 3092, Institute for the Study of Labor (IZA).
  3. Arulampalam, Wiji & Booth, Alison L & Bryan, Mark L, 2004. "Are There Asymmetries in the Effects of Training on the Conditional Male Wage Distribution?," CEPR Discussion Papers 4289, C.E.P.R. Discussion Papers.
  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.
  5. Huber, Martin & Mellace, Giovanni, 2011. "Sharp bounds on causal effects under sample selection," Economics Working Paper Series 1134, University of St. Gallen, School of Economics and Political Science.
  6. Jun Nie, 2010. "Training or search? evidence and an equilibrium model," Research Working Paper RWP 10-03, Federal Reserve Bank of Kansas City.
  7. Martin Huber, 2009. "Treatment evaluation in the presence of sample selection," University of St. Gallen Department of Economics working paper series 2009 2009-07, Department of Economics, University of St. Gallen.
  8. N�ria Rodríguez-Planas, 2010. "Channels through which Public Employment Services and Small Business Assistance Programmes Work," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(4), pages 458-485, 08.

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