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The Effectiveness of Public-Sponsored Training Revisited: The Importance of Data and Methodological Choices

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  • Martin Biewen
  • Bernd Fitzenberger
  • Aderonke Osikominu
  • Marie Paul

Abstract

This article revisits the effectiveness of public-sponsored training programs for Germany accounting for dynamic selection into heterogeneous programs. We carefully assess to what extent various aspects of our empirical strategy, such as conditioning flexibly on employment and benefit histories, the availability of rich data, handling of later program participations, and further methodological choices affect our estimates. Our results imply pronounced negative lock-in effects in the short run and positive medium-run effects on employment and earnings when job-seekers enroll after having been unemployed for some time. We find that data and specification issues can have a large effect.

Suggested Citation

  • Martin Biewen & Bernd Fitzenberger & Aderonke Osikominu & Marie Paul, 2014. "The Effectiveness of Public-Sponsored Training Revisited: The Importance of Data and Methodological Choices," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 837-897.
  • Handle: RePEc:ucp:jlabec:doi:10.1086/677233
    DOI: 10.1086/677233
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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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