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Employment Effects of Publicly Financed Training Programs – The East German Experience / Beschäftigungseffekte von Fortbildungs- und Umschulungsmaßnahmen in Ostdeutschland

Author

Listed:
  • Kraus Florian
  • Puhani Patrick

    (Mannheim)

  • Steiner Viktor

    () (ZEW, P.O. Box 10 3443, D-68034 Mannheim, Germany)

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.

Suggested Citation

  • Kraus Florian & Puhani Patrick & Steiner Viktor, 1999. "Employment Effects of Publicly Financed Training Programs – The East German Experience / Beschäftigungseffekte von Fortbildungs- und Umschulungsmaßnahmen in Ostdeutschland," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 219(1-2), pages 216-248, February.
  • Handle: RePEc:jns:jbstat:v:219:y:1999:i:1-2:p:216-248
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    Citations

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    Cited by:

    1. Lechner, Michael & Wunsch, Conny, 2006. "Active Labour Market Policy in East Germany: Waiting for the Economy to Take Off," CEPR Discussion Papers 5924, C.E.P.R. Discussion Papers.
    2. Fitzenberger, Bernd & Volter, Robert, 2007. "Long-run effects of training programs for the unemployed in East Germany," Labour Economics, Elsevier, vol. 14(4), pages 730-755, August.
    3. Horst Feldmann, 2002. "Labour Market Policies in Transition: Lessons from East Germany," Post-Communist Economies, Taylor & Francis Journals, vol. 14(1), pages 47-84.
    4. Wolfgang Franz & Viktor Steiner, 2000. "Wages in the East German Transition Process: Facts and Explanations," German Economic Review, Verein für Socialpolitik, vol. 1(3), pages 241-269, August.
    5. Michael Lechner & Ruth Miquel & Conny Wunsch, 2007. "The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification," German Economic Review, Verein für Socialpolitik, vol. 8, pages 468-509, November.
    6. Horst Feldmann, 2001. "Transformation in Ostdeutschland: Hat die Arbeitsmarktpolitik den Betroffenen geholfen?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 2(3), pages 259-278, August.
    7. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection and Labor Policy and Technical Notes 29142, The World Bank.
    8. Rabe, Birgitta, 2000. "Wirkungen aktiver Arbeitsmarktpolitik: Evaluierungsergebnisse für Deutschland, Schweden, Dänemark und die Niederlande," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 00-208, Social Science Research Center Berlin (WZB).
    9. Reinowski, Eva & Schultz, Birgit & Wiemers, Jürgen, 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 (IWH).

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