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Manpower Training Programs and Employment Stability

  • Zweimuller, Josef
  • Winter- Ebmer, Rudolf

We evaluate Austrian labor market policy focusing on its possible effects upon recurrent unemployment. Without properly considering the selection processes for public training programs, perverse results emerge. Taking the participation decision into account in a bivariate probit setting, Austrian manpower training programs turn out to be a sort of 'catching up1 strategy: (i) disadvantaged and less motivated job-seekers are given priority in enrollment into training programs and (ii) participation in such courses improves employment stability significantly.

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Paper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number qt87z0674q.

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Date of creation: 01 May 1992
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Handle: RePEc:cdl:indrel:qt87z0674q
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  1. Haskel, Jonathan & Jackman, Richard, 1988. "Long-term Unemployment in Britain and the Effects of the Community Programme," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 50(4), pages 379-408, November.
  2. Card, David & Sullivan, Daniel G, 1988. "Measuring the Effect of Subsidized Training Programs on Movements in and out of Employment," Econometrica, Econometric Society, vol. 56(3), pages 497-530, May.
  3. Main, Brian G M & Shelly, Michael A, 1990. "The Effectiveness of the Youth Training Scheme as a Manpower Policy," Economica, London School of Economics and Political Science, vol. 57(228), pages 495-514, November.
  4. Bassi, Laurie J, 1984. "Estimating the Effect of Training Programs with Non-Random Selection," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 36-43, February.
  5. James J. Heckman & V. Joseph Hotz & Marcelo Dabos, 1987. "Do We Need Experimental Data To Evaluate the Impact of Manpower Training On Earnings?," Evaluation Review, , vol. 11(4), pages 395-427, August.
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