The Heterogeneous Effects of Training Incidence and Duration on Labor Market Transitions
Abstract
This 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.Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.Bibliographic Info
Paper 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:
Handle: RePEc:iza:izadps:dp5269
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:
Related research
Keywords: evaluation; active labor market programs; dynamic non-linear panel data models; MCMC;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:
- NEP-ALL-2010-11-06 (All new papers)
- NEP-LAB-2010-11-06 (Labour Economics)
References
References listed on IDEASPlease 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.:
- 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 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Alfonso Flores-Lagunes & Arturo Gonzalez & Todd C. Neumann, 2007.
"Estimating the Effects of Length of Exposure to a Training Program: The Case of Job Corps,"
Working Papers
1042, Princeton University, Department of Economics, Industrial Relations Section..
- Flores-Lagunes, Alfonso & Gonzalez, Arturo & Neumann, Todd C., 2007. "Estimating the Effects of Length of Exposure to a Training Program: The Case of Job Corps," IZA Discussion Papers 2846, Institute for the Study of Labor (IZA).
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Bräuninger, Michael & Michaelis, Jochen & Sode, Madlen, 2013.
"10 Jahre Hartz-Reformen,"
HWWI Policy Papers
73, Hamburg Institute of International Economics (HWWI).
- Michael Bräuninger & Jochen Michaelis & Madlen Sode, 2013. "10 Jahre Hartz-Reformen," MAGKS Papers on Economics 201318, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Kelly, Elish & McGuinness, Seamus & O'Connell, Philip J., 2011. "What Can Active Labour Market Policies Do?," Papers EC1, Economic and Social Research Institute (ESRI).
- Sergio Urzúa & Esteban Puentes, 2010. "La evidencia del impacto de los programas de capacitación en el desempeño en el mercado laboral," IDB Publications 38038, Inter-American Development Bank.
- Heyer, Gerd & Koch, Susanne & Stephan, Gesine & Wolff, Joachim, 2011. "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," IAB Discussion Paper 201117, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- 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).
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp5269For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

