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Nonparametric bounds on employment and income effects of continuous vocational training in East Germany

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  • MICHAEL LECHNER

Abstract

This paper explores the potential of an approach suggested by Manski to obtain nonparametric bounds of treatment effects in evaluation studies without knowledge of the participation process. The practical concern is the estimation of the effects of continuous vocational training in East Germany. The empirical application is based on a large cross-section that covers about 0.6% of the total population in 1993. The results are rather mixed. The large width of the intervals obtained emphasize the fundamental problem of all evaluation studies without good knowledge of the relationship between potential outcomes and the participation process. However, in some cases, suitable exclusion restrictions are indeed able to bound the treatment effects strictly away from zero.

Suggested Citation

  • Michael Lechner, 1999. "Nonparametric bounds on employment and income effects of continuous vocational training in East Germany," Econometrics Journal, Royal Economic Society, vol. 2(1), pages 1-28.
    • Handle: RePEc:ect:emjrnl:v:2:y:1999:i:1:p:1-28
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    1. Manski, Charles F, 1990. "Nonparametric Bounds on Treatment Effects," American Economic Review, American Economic Association, vol. 80(2), pages 319-323, May.
    2. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-620, September.
    3. Charles F. Manski, 1989. "Anatomy of the Selection Problem," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 343-360.
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    5. Fitzenberger, Bernd & Prey, Hedwig, 1996. "Training in East Germany: An evaluation of the effects on employment and wages," Discussion Papers 36, University of Konstanz, Center for International Labor Economics (CILE).
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    8. Heckman, J.J. & Hotz, V.J., 1988. "Choosing Among Alternative Nonexperimental Methods For Estimating The Impact Of Social Programs: The Case Of Manpower Training," University of Chicago - Economics Research Center 88-12, Chicago - Economics Research Center.
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    More about this item

    Keywords

    Nonparametric estimation of treatment effects; Training evaluation; East Ger-man labour markets; Mikrozensus.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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