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The Impact of Government-Sponsored Training Programs on the Labor Market Transitions of Disadvantaged Men

Author

Listed:
  • Lucie Gilbert
  • Thierry Kamionka
  • Guy Lacroix

Abstract

The analysis focuses on the impact of government-sponsored training programs aimed at disadvantaged male youths on their labour market transitions. The richness of the data at our disposal allows us to recreate very detailed individual histories over a relatively long period. We use a continuous time duration model to estimate the density of duration times in as many as seven states, controlling for the endogeneity of an individual s training status. We investigate the sensitivity of the parameter estimates by comparing a typical non-parametric specification with a series of parametric two-factor loading models, as well as a parametric three-factor loading model. Our results show that young, poorly educated males who participate in welfare training programs do worse on the labour market than those who do not participate. On the other hand, participation in unemployment training programs provides them some benefits. In general, we find that duration times in any of the seven states considered are sensitive to variations in program parameters such as welfare benefits, policy variables such as the minimum wage rate, and in the economic environment as proxied by the unemployment rate. Dans cet article, nous cherchons à déterminer l'impact des mesures actives d'insertion sur les transitions des jeunes prestataires masculins de l'aide de dernier recours sur le marché du travail. La richesse des données à notre disposition nous permet de recréer de façon très détaillée l'historique de chaque prestataire sur une période relativement longue. Nous avons recours à un modèle de durée en temps continue pour estimer la densité des durées observées dans plus de sept états différents. L'endogénéité de la présence dans une mesure active est explicitement prise en compte. Nous analysons la sensibilité des paramètres estimés en comparant les résultats d'un modèle non-paramétrique standard avec ceux de plusieurs modèles paramétriques à deux ou trois facteurs de charge. Nos résultats montrent que les jeunes hommes peu scolarisés qui participent à des mesures actives destinées aux prestataires d'aide de dernier recours ont davantage de difficultés à s'intégrer au marché du travail que ceux qui ne participent pas à des telles mesures. En revanche, les mesures d'insertion offertes dans le cadre du programme d'assurance-emploi semblent donner de meilleurs résultats. De façon générale, la durée dans chacun des sept états considérés est sensible aux variables considérées dans l'analyse, soient les prestations d'aide de dernier recours, le salaire minimum, et le taux de chômage.

Suggested Citation

  • Lucie Gilbert & Thierry Kamionka & Guy Lacroix, 2000. "The Impact of Government-Sponsored Training Programs on the Labor Market Transitions of Disadvantaged Men," CIRANO Working Papers 2000s-29, CIRANO.
  • Handle: RePEc:cir:cirwor:2000s-29
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    File URL: http://www.cirano.qc.ca/files/publications/2000s-29.pdf
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    Keywords

    Multi-state multi-episods duration model; non-parametric heterogeneity; training programs; welfare; Modèle de durée multi-états multi-épisodes; hétérogénéité non-paramétrique; mesures active d'insertion; aide de dernier recours;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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