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Are Training Programs More Effective When Unemployment Is High?

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  • Michael Lechner
  • Conny Wunsch

Abstract

We estimate short, medium, and long-run individual labor market effects of training programs for unemployed by following program participation on a monthly basis over a tenyear period. Since analyzing the effectiveness of training over such a long period is impossible with experimental data, we use an administrative database compiled for evaluating German training programs. Based on matching estimation adapted to the various issues that arise in this particular context, we find a clear positive relation between the effectiveness of the programs and the unemployment rate over time.

Suggested Citation

  • Michael Lechner & Conny Wunsch, 2006. "Are Training Programs More Effective When Unemployment Is High?," University of St. Gallen Department of Economics working paper series 2006 2006-23, Department of Economics, University of St. Gallen.
    • Handle: RePEc:usg:dp2006:2006-23
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    References listed on IDEAS

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    More about this item

    Keywords

    Active labor market policy; long-run effects; matching estimation; causal effects; program evaluation; panel data;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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