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Employment and Earnings Effects of Awarding Training Vouchers in Germany

Author

Listed:
  • Annabelle Doerr
  • Bernd Fitzenberger
  • Thomas Kruppe
  • Marie Paul
  • Anthony Strittmatter

Abstract

Participation in intensive training programs for the unemployed in Germany is allocated by awarding training vouchers. Using rich administrative data for all vouchers and actual program participation, the authors provide first estimates of the short-run and long-run employment and earnings effects of receiving a training voucher award based on a selection-on-observables assumption. The results imply that, after the award, voucher recipients experience long periods of lower labor market success compared to had they not received training vouchers. Small positive employment effects and no gains in earnings were observed four to seven years after the receipt of the voucher award. In addition, the findings suggest stronger positive effects both for all low-skilled individuals who were awarded and redeemed a voucher and for low-skilled and medium-skilled individuals who chose to take degree courses than for higher-skilled recipients.

Suggested Citation

  • Annabelle Doerr & Bernd Fitzenberger & Thomas Kruppe & Marie Paul & Anthony Strittmatter, 2017. "Employment and Earnings Effects of Awarding Training Vouchers in Germany," ILR Review, Cornell University, ILR School, vol. 70(3), pages 767-812, May.
  • Handle: RePEc:sae:ilrrev:v:70:y:2017:i:3:p:767-812
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    Cited by:

    1. Goller, Daniel & Lechner, Michael & Moczall, Andreas & Wolff, Joachim, 2020. "Does the estimation of the propensity score by machine learning improve matching estimation? The case of Germany's programmes for long term unemployed," Labour Economics, Elsevier, vol. 65(C).
    2. Alexander Spermann, 2015. "How to fight long-term unemployment: lessons from Germany," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-15, December.
    3. Martin Huber & Michael Lechner & Anthony Strittmatter, 2018. "Direct and indirect effects of training vouchers for the unemployed," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 181(2), pages 441-463, February.
    4. Michael Lechner & Anthony Strittmatter, 2019. "Practical procedures to deal with common support problems in matching estimation," Econometric Reviews, Taylor & Francis Journals, vol. 38(2), pages 193-207, February.
    5. Massimiliano Bratti & Corinna Ghirelli & Enkelejda Havari & Giulia Santangelo, 2022. "Vocational training for unemployed youth in Latvia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 677-717, April.
    6. Doerr, Annabelle, 2022. "Vocational Training for Female Job Returners - Effects on Employment, Earnings and Job Quality," Working papers 2022/02, Faculty of Business and Economics - University of Basel.
    7. Nadine Fabritz & Oliver Falck, 2016. "Human Capital in Croatia," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(01), pages 39-42, April.
    8. Doerr Annabelle & Strittmatter Anthony, 2021. "Identifying Causal Channels of Policy Reforms with Multiple Treatments and Different Types of Selection," Journal of Econometric Methods, De Gruyter, vol. 10(1), pages 67-88, January.
    9. Bernhard Boockmann & Tobias Brändle, 2019. "Coaching, Counseling, Case‐Working: Do They Help the Older Unemployed Out of Benefit Receipt and Back Into the Labor Market?," German Economic Review, Verein für Socialpolitik, vol. 20(4), pages 436-468, November.
    10. Dauth, Christine, 2017. "Regional discontinuities and the effectiveness of further training subsidies for low-skilled employees," IAB-Discussion Paper 201707, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Doerr, Annabelle, 2017. "Back to work: The Long-term Effects of Vocational Training for Female Job Returners," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168213, Verein für Socialpolitik / German Economic Association.
    12. Miroslav Stefanik, 2021. "Shifting the Training Choice Decision to the Jobseeker—The Slovak Experience," LABOUR, CEIS, vol. 35(2), pages 192-213, June.
    13. Stephan, Gesine & Uthmann, Sven, 2014. "Akzeptanz von Vergeltungsmaßnahmen am Arbeitsplatz : Befunde aus einer quasi-experimentellen Untersuchung," IAB-Discussion Paper 201427, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Spermann, Alexander, 2014. "Zehn Jahre Hartz IV – Was hilft Langzeitarbeitslosen wirklich?," IZA Standpunkte 76, Institute of Labor Economics (IZA).
    15. Doerr, Annabelle, 2022. "Vocational training for female job returners - Effects on employment, earnings and job quality," Labour Economics, Elsevier, vol. 75(C).
    16. Chiara Natalie Focacci, 2020. "“You reap what you sow”: Do active labour market policies always increase job security? Evidence from the Youth Guarantee," European Journal of Law and Economics, Springer, vol. 49(3), pages 373-429, June.
    17. Dauth, Christine, 2016. "Do low-skilled employed workers benefit from further training subsidies?," VfS Annual Conference 2016 (Augsburg): Demographic Change 145533, Verein für Socialpolitik / German Economic Association.
    18. Bläsche, Alexandra & Brandherm, Ruth & Eckhardt, Christoph & Käpplinger, Bernd & Knuth, Matthias & Kruppe, Thomas & Kuhnhenne, Michaela & Schütt, Petra, 2017. "Qualitätsoffensive strukturierte Weiterbildung in Deutschland," Working Paper Forschungsförderung 025, Hans-Böckler-Stiftung, Düsseldorf.
    19. Madoń, Karol & Magda, Iga & Palczyńska, Marta & Smoter, Mateusz, 2021. "What Works for Whom? Youth Labour Market Policy in Poland," IZA Discussion Papers 14793, Institute of Labor Economics (IZA).
    20. Caliendo, Marco & Mahlstedt, Robert & Mitnik, Oscar A., 2017. "Unobservable, but unimportant? The relevance of usually unobserved variables for the evaluation of labor market policies," Labour Economics, Elsevier, vol. 46(C), pages 14-25.
    21. Rainer Eppel, 2017. "The Effects of a Job-Creation Scheme: Evidence from Regional Variation in Program Capacities," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(1), pages 161-190, January.
    22. Nadine Fabritz & Oliver Falck, 2016. "Human Capital in Croatia," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(1), pages 39-42, April.
    23. Bratti, Massimiliano & Ghirelli, Corinna & Havari, Enkelejda & Santangelo, Giulia, 2018. "Vocational Training for Unemployed Youth in Latvia: Evidence from a Regression Discontinuity Design," IZA Discussion Papers 11870, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    active labor market policies; training vouchers; treatment effects;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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