Is Labour Market Training a Curse for the Unemployed? Evidence from a Social Experiment
AbstractIn this paper, we investigate the impact of classroom training programmes on individual unemployment rates in Denmark. In 1994 a social experiment was conducted, where unemployed applicants for labour market training were randomised into treatment and control groups. We formulate and estimate experimental impact estimators of the effect of treatment on the treated. The experimental data is polluted by the presence of no-shows and crossovers, which implies that traditional experimental estimators are biased. Therefore we formulate and estimate an endogenous variables model (using the randomisation indicator as a perfect exclusion restriction) and implement various matching estimators. We find – surprisingly – that classroom training significantly increases individual unemployment rates. We discuss some possible reasons for this surprising finding and some related policy issues.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 716.
Length: 37 pages
Date of creation: Feb 2003
Date of revision:
Publication status: published in: Journal of Applied Econometrics, 2009, 24 (2), 338-365.
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Find related papers by JEL classification:
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-02-24 (All new papers)
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- Weber, Andrea & Hofer, Helmut, 2003. "Active Job-search Programs a Promising Tool? A Microeconometric Evaluation for Austria," Economics Series 131, Institute for Advanced Studies.
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