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Quick Job Entry or Long-Term Human Capital Development? The Dynamic Effects of Alternative Training Schemes

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  • Osikominu, Aderonke

    ()
    (University of Hohenheim)

Abstract

This study evaluates and compares the effectiveness of two alternative training schemes for the unemployed: short, job-search oriented training and long, human capital oriented training. We investigate the impact dynamics of these programs considering both unemployment and employment duration. Our analysis uses a rich administrative longitudinal data set for Germany where both programs were implemented at the same time. Our estimation strategy flexibly accounts for dynamic selection on observables and unobservables as well as heterogeneous treatment effects. The results indicate that short-term training schemes can be an effective tool to reduce unemployment in the long run, in particular if participation occurs early during unemployment. Long-term training schemes increase the average duration of employment spells more strongly than short-term training. However, they increase the expected unemployment duration if they are started early during unemployment. This negative short-run impact of long-term training is an important driver of its overall effectiveness.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4638.

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Length: 68 pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4638

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Related research

Keywords: active labor market policy; dynamic treatment effects; duration analysis; program evaluation; training; multiple treatments;

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References

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Citations

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Cited by:
  1. Fitzenberger, Bernd & Orlyanskaya, Olga & Osikominu, Aderonke & Waller, Marie, 2008. "Déjà vu? Short-term training in Germany 1980-1992 and 2000-2003," IAB Discussion Paper 200827, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Heyer, Gerd & Koch, Susanne & Stephan, Gesine & Wolff, Joachim, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011 (Evaluation of active labor market programs : a summary of recent results for the German program refo," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 45(1), pages 41-62.
  3. Karlan, Dean, 2012. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," Working Papers, Yale University, Department of Economics 95, Yale University, Department of Economics.
  4. Martin Biewen & Bernd Fitzenberger & Aderonke Osikominu & Marie Paul, 2012. "The Effectiveness of Public Sponsored Training Revisited: The Importance of Data and Methodological Choices," NRN working papers 2012-09, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  5. Kruppe, Thomas & Lang, Julia, 2014. "Labour market effects of retraining for the unemployed : the role of occupations," IAB Discussion Paper 201420, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  6. Fairlie, Robert, 2014. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," Santa Cruz Department of Economics, Working Paper Series qt56k4264f, Department of Economics, UC Santa Cruz.

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