Evaluating Public Sector Sponsored Training in East Germany
Support of training has been a very important instrument of active labor market policy in East Germany. This paper attempts an evaluation of the employment and wage effects of training supported by public income maintenance outside of a firm. After describing the labor market developments in East Germany, we illustrate the evaluation problem. Then, we estimate a simultaneous model for participation in training, employment, and wages. Taking account of selection effects before participation, our findings mostly suggest positive though only partially significant long-run effects of training on employment or wages. Copyright 2000 by Oxford University Press.
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Volume (Year): 52 (2000)
Issue (Month): 3 (July)
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