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Employment Effects of Publicly Financed Training Programs The East German Experience

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Author Info
Kraus, Florian
Puhani, Patrick A.
Steiner, Viktor

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Abstract

We analyze the effectiveness of publicly financed training and retraining programs in east Germany as measured by their effects on individual re-employment probabilities after training. These are estimated by discrete hazard rate models on the basis of individual-level panel data. We account for unobserved individual heterogeneity in both the training participation and outcome equation. The latter differentiates between transitions into "stable" and "unstable" employment after the completion of a training program. Our findings are that in the first phase of the east German transition process, when the institutions delivering the training programs were being set up, there are no positive effects of training on the probability to find stable employment. For the period of September 1992 to November 1994, when the institutional structure for the programs was in place, we find positive effects of both on–the–job and off–the–job training for women, and positive effects of off–the–job training for men.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 97-33.

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Date of creation: 1997
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Handle: RePEc:zbw:zewdip:5135

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Related research
Keywords: publicly financed training; evaluation studies; employment effects; sample selection; east Germany;

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Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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Please 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.:

  1. Ridder, G, 1986. "An Event History Approach to the Evaluation of Training, Recruitment and Employment Programmes," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(2), pages 109-26, April. [Downloadable!] (restricted)
  2. Eichler, Martin & Lechner, Michael, . "Public Sector Sponsored Continuous Vocational Training in East Germany: Institutional Arrangements, Participants, and Results of Empirical Evaluations," IVS discussion paper series 549, Institut für Volkswirtschaft und Statistik (IVS), University of Mannheim. [Downloadable!]
  3. R. Hujer & K.-O. Maurer & M. Wellner, 1997. "Estimating the Effect of Training on Unemployment Duration in West Germany - A Discrete Hazard-Rate Model with Instrumental Variables," Econometrics 9704001, EconWPA. [Downloadable!]
  4. Gritz, R. Mark, 1993. "The impact of training on the frequency and duration of employment," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 21-51. [Downloadable!] (restricted)
  5. Cramer, J. S. & Ridder, G., 1991. "Pooling states in the multinomial logit model," Journal of Econometrics, Elsevier, vol. 47(2-3), pages 267-272, February. [Downloadable!] (restricted)
  6. Lechner, Michael, . "An Evaluation of Public Sector Sponsored Continuous Vocational Training Programs in East Germany," IVS discussion paper series 539, Institut für Volkswirtschaft und Statistik (IVS), University of Mannheim. [Downloadable!]
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  7. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Blackwell Publishing, vol. 65(2), pages 261-94, April. [Downloadable!] (restricted)
  8. Ham, John C & LaLonde, Robert J, 1996. "The Effect of Sample Selection and Initial Conditions in Duration Models: Evidence from Experimental Data on Training," Econometrica, Econometric Society, vol. 64(1), pages 175-205, January. [Downloadable!] (restricted)
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Cited by:
(explanations, Please 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.)

  1. Fitzenberger, Bernd & Speckesser, Stefan, 2000. "Zur wissenschaftlichen Evaluation der aktiven Arbeitsmarktpolitik in Deutschland : ein Überblick," ZEW Discussion Papers 00-06, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  2. Lechner, Michael & Wunsch, Conny, 2006. "Active labour market policy in East Germany : waiting for the economy to take off," IAB Discussion Paper 200620, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
    Other versions:
  3. Eva Reinowski & Birgit Schultz & Jürgen Wiemers, 2003. "Evaluation von Maßnahmen der aktiven Arbeitsmarktpolitik mit Hilfe eines iterativen Matching-Algorithmus Eine Fallstudie über langzeitarbeitslose Maßnahmeteilnehmer in Sachsen," IWH Discussion Papers 173, Halle Institute for Economic Research. [Downloadable!]
  4. Kraus, Florian & Puhani, Patrick A. & Steiner, Viktor, 1998. "Do public works programs work? : Some unpleasant results from the East German experience," ZEW Discussion Papers 98-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  5. Erich Gundlach, 2003. "Growth Effects of EU Membership: The Case of East Germany," Empirica, Springer, vol. 30(3), pages 237-270, September. [Downloadable!] (restricted)
  6. Horst Feldmann, 2002. "Labour Market Policies in Transition: Lessons from East Germany," Post-Communist Economies, Taylor and Francis Journals, vol. 14(1), pages 47-84, March. [Downloadable!] (restricted)
  7. Hujer, Reinhard & Wellner, Marc, 2000. "The Effects of Public Sector Sponsored Training on Individual Employment Performance in East Germany," IZA Discussion Papers 141, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Reinhard Hujer & Stephan Thomsen & Christopher Zeiss, 2006. "The effects of vocational training programmes on the duration of unemployment in Eastern Germany," AStA Advances in Statistical Analysis, Springer, vol. 90(2), pages 299-321, June. [Downloadable!] (restricted)
    Other versions:
  9. Lechner, Michael & Miquel, Ruth & Wunsch, Conny, 2005. "The curse and blessing of training the unemployed in a changing economy : the case of East Germany after unification," IAB Discussion Paper 200514, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
    Other versions:
  10. Hilmar Schneider & Karl Brenke & Birgit Jesske & Lutz Kaiser & Ulf Rinne & Marc Schneider & Jacob Steinwede & Arne Uhlendorff, 2007. "Evaluation der Maßnahmen zur Umsetzung der Vorschläge der Hartz-Kommission - Bericht 2006," IZA Research Reports 10, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  11. Franz, Wolfgang & Steiner, Viktor, 1999. "Wages in the East German transition process : facts and explanations," ZEW Discussion Papers 99-40, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  12. Michael Lechner & Martin Eichler, 1999. "An Evaluation of Public Employment Programmes in the East German State of Sachsen-Anhalt," IZA Discussion Papers 94, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  13. Lechner, Michael & Pfeiffer, Friedhelm & Spengler, Hannes & Almus, Matthias, 2000. "The impact of non-profit temping agencies on individual labour market success in the West German state of Rhineland-Palatinate," ZEW Discussion Papers 00-02, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  14. Bart Cockx & Isabelle Bardoulat, 2000. "Vocational Training: Does it speed up the Transition Rate out of Unemployment?," Tinbergen Institute Discussion Papers 00-016/3, Tinbergen Institute. [Downloadable!]
    Other versions:
  15. Fitzenberger, Bernd & Speckesser, Stefan, 2000. "Zur wissenschaftlichen Evaluation der Aktiven Arbeitsmarktpolitik in Deutschland : ein Überblick (On the scientific evaluation of Germany's active labour market policy : an overview)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 33(3), pages 357-370. [Downloadable!]
  16. Eva Reinowski & Birgit Schultz & Jürgen Wiemers, 2005. "Evaluation of Further Training Programmes with an Optimal Matching Algorithm," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(IV), pages 585-616, December. [Downloadable!]
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