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The Impact Of Training Programmes On Wages In France: An Evaluation Of The “Qualifying Contract” Using Propensity Scores

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  • Sofia Pessoa e Costa
  • Stéphane Robin

Abstract

This paper evaluates the impact of a widely-used French training programme for youth on earnings. This programme is designed to increase labour market experience and education, validated by a formal diploma. It is not sure, however, whether this diploma and a similar diploma acquired through initial training have the same effect on post-training wages. To answer this question, we contrast the 2003 net wages of a group of participants enrolled in 1998 (the “treatment” group) to the 2003 net wages of a control group. The controls are individuals who completed their initial training in 1998 with diplomas similar to those obtained by the treated at the end of the programme. Using propensity score matching, we find a significantly positive effect of the treatment on the treated: participants in the programme benefit, five years after participation, from a positive wage premium. This suggests that firms do not simply value education: they value it more if it is coupled with some degree of labour market experience.

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Paper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 2007-18.

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Date of creation: 2007
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Handle: RePEc:ulp:sbbeta:2007-18

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Keywords: active labour market policies; training programmes for youth; propensity score matching.;

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Cited by:
  1. Li Qin & Eleftherios Spyromitros & Moïse Sidiropoulos, 2007. "Monetary Policy with Uncertain Central Bank Preferences for Robustness," Working Papers of BETA 2007-23, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  2. Meixing DAI, 2007. "A two-pillar strategy to keep inflation expectations at bay: A basic theoretical framework," Working Papers of BETA 2007-20, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  3. Meixing DAI & Moïse SIDIROPOULOS & Eleftherios SPYROMITROS, 2007. "La transparence de la politique monétaire et la dynamique des marchés financiers," Working Papers of BETA 2007-19, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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