The Heterogeneous Effects of Training Incidence and Duration on Labor Market Transitions
AbstractThis paper estimates the impact of training incidence and duration on employment transitions accounting for the endogeneity of program participation and duration. We specify a very flexible bivariate random effects probit model for employment and training participation and we use Bayesian Markov Chain Monte Carlo (MCMC) techniques for estimation. We develop a simulation approach that uses the estimated coefficients and individual specific effects from the MCMC iterations to calculate the posterior distributions of different treatment effects of interest. Our estimation results imply positive effects of training on the employment probability of the treated, lying between 12 and 21 percentage points ten quarters after program start. The effects are higher for women than for men and higher in West Germany than in East Germany. Further, we find that the effect of training versus waiting underestimates the effect of training versus no training in the medium and long run by a third. Finally, our results show that longer planned enrolment lengths of three and four quarters as opposed to just two quarters lead to an increase in employment rates in the medium and long run by four to eleven percentage points.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5269.
Length: 62 pages
Date of creation: Oct 2010
Date of revision:
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Other versions of this item:
- Fitzenberger, Bernd & Osikominu, Aderonke & Paul, Marie, 2010. "The heterogeneous effects of training incidence and duration on labor market transitions," ZEW Discussion Papers 10-077, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
This paper has been announced in the following NEP Reports:
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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- Alfonso Flores-Lagunes & Arturo Gonzalez & Todd C. Neumann, 2007.
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1042, Princeton University, Department of Economics, Industrial Relations Section..
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- Bräuninger, Michael & Michaelis, Jochen & Sode, Madlen, 2013.
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HWWI Policy Papers
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- Fernández-Kranz, Daniel & Paul, Marie & Rodríguez-Planas, Núria, 2011. "Part-Time Work, Fixed-Term Contracts, and the Returns to Experience," IZA Discussion Papers 5815, Institute for the Study of Labor (IZA).
- Kluve, Jochen & Rinne, Ulf & Uhlendorff, Arne & Zhao, Zhong, 2012. "Endogenous Exit Bias in Training Programs for Unemployed Workers," IZA Discussion Papers 6565, Institute for the Study of Labor (IZA).
- Ham, John C. & Woutersen, Tiemen, 2011. "Calculating Confidence Intervals for Continuous and Discontinuous Functions of Estimated Parameters," IZA Discussion Papers 5816, Institute for the Study of Labor (IZA).
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