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Endogenous Exit Bias in Training Programs for Unemployed Workers

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Author Info

  • Kluve, Jochen

    ()
    (Humboldt University Berlin, RWI)

  • Rinne, Ulf

    ()
    (IZA)

  • Uhlendorff, Arne

    ()
    (University of Mannheim)

  • Zhao, Zhong

    ()
    (Renmin University of China)

Abstract

This paper assesses the importance of reverse causality when evaluating the impact of training duration for unemployed workers. We use planned duration as an instrumental variable for actual duration. Our results suggest that the potential endogeneity of exits seems to be only relevant in the lower and upper part of the treatment duration distribution.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6565.

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Length: 11 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6565

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Keywords: local average treatment effect; dropouts; treatment duration;

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References

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  1. Carlos A. Flores & Alfonso Flores-Lagunes & Arturo Gonzalez & Todd C. Neumann, 2012. "Estimating the Effects of Length of Exposure to Instruction in a Training Program: The Case of Job Corps," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 153-171, February.
  2. Jochen Kluve & Hilmar Schneider & Arne Uhlendorff & Zhong Zhao, 2012. "Evaluating continuous training programmes by using the generalized propensity score," Journal of the Royal Statistical Society Series A, Royal Statistical Society, Royal Statistical Society, vol. 175(2), pages 587-617, 04.
  3. van Ours, Jan C, 2002. "The Locking-in Effect of Subsidized Jobs," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3489, C.E.P.R. Discussion Papers.
  4. Fitzenberger, Bernd & Osikominu, Aderonke & Paul, Marie, 2010. "The heterogeneous effects of training incidence and duration on labor market transitions," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 10-077, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. James Heckman & Neil Hohmann & Jeffrey Smith, 1998. "Substitution and Dropout Bias in Social Experiments: A Study of an Influential Social Experiment," UWO Department of Economics Working Papers, University of Western Ontario, Department of Economics 9819, University of Western Ontario, Department of Economics.
  6. Joshua D. Angrist & Guido W. Imbens, 1995. "Identification and Estimation of Local Average Treatment Effects," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0118, National Bureau of Economic Research, Inc.
  7. Ours, J.C. van, 2004. "The locking-in effect of subsidized jobs," Open Access publications from Tilburg University urn:nbn:nl:ui:12-140882, Tilburg University.
  8. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  9. James Heckman & Jeffrey Smith & Christopher Taber, 1998. "Accounting For Dropouts In Evaluations Of Social Programs," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 1-14, February.
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