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The Effects of On-the-job and Out-of-Employment Training Programmes on Labor Market Histories

Author

Listed:
  • Blasco, Sylvie
  • Crépon, Bruno
  • Kamionka, Thierry

Abstract

We evaluate the impact of both on-the-job and out-of-employment training on the mobilities on the labour market. Using a French survey that provides work and training participation histories over a five-year period, we estimate a multi-spell multi-state transitions model with unobserved heterogeneity and treatment of initial conditions à la Wooldridge. This allows to take participation in programmes and their duration as endogenous. We allow training to have an impact up to 12 months after entry into a program, so that we study both current and past duration and state dependencies. We find that there are interdependencies between the two types of training. Participation in training has a lasting effect on the individual trajectories. Receiving on-the-job training increases the risk of separation, but both types of training increases the hazard rate to employment.

Suggested Citation

  • Blasco, Sylvie & Crépon, Bruno & Kamionka, Thierry, 2012. "The Effects of On-the-job and Out-of-Employment Training Programmes on Labor Market Histories," CEPREMAP Working Papers (Docweb) 1210, CEPREMAP.
  • Handle: RePEc:cpm:docweb:1210
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    File URL: http://www.cepremap.fr/depot/docweb/docweb1210.pdf
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    References listed on IDEAS

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    1. Picchio, Matteo & van Ours, Jan C., 2013. "Retaining through training even for older workers," Economics of Education Review, Elsevier, vol. 32(C), pages 29-48.
    2. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    3. Thierry Kamionka & Cyriaque Edon, 2007. "Modélisation dynamique de la participation au marché du travail des femmes en couple," Annals of Economics and Statistics, GENES, issue 86, pages 77-108.
    4. Michael Gerfin, 2003. "Work-Related Training and Wages: An empirical analysis for male workers in Switzerland," Diskussionsschriften dp0316, Universitaet Bern, Departement Volkswirtschaft.
    5. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
    6. Lorraine Dearden & Howard Reed & John Van Reenen, 2006. "The Impact of Training on Productivity and Wages: Evidence from British Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 397-421, August.
    7. Annette Bergemann & Bernd Fitzenberger & Stefan Speckesser, 2009. "Evaluating the dynamic employment effects of training programs in East Germany using conditional difference-in-differences," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(5), pages 797-823.
    8. Thierry Kamionka & Guy Lacroix, 2008. "Assessing the External Validity of an Experimental Wage Subsidy," Annals of Economics and Statistics, GENES, issue 91-92, pages 357-384.
    9. Laroque, Guy & Salanie, B, 1993. "Simulation-Based Estimation of Models with Lagged Latent Variables," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(S), pages 119-133, Suppl. De.
    10. Goux, Dominique & Maurin, Eric, 2000. "Returns to firm-provided training: evidence from French worker-firm matched data1," Labour Economics, Elsevier, vol. 7(1), pages 1-19, January.
    11. Denis Fougère & Dominique Goux & Éric Maurin, 2001. "Formation continue et carrières salariales. Une évaluation sur données individuelles," Annals of Economics and Statistics, GENES, issue 62, pages 49-69.
    12. repec:adr:anecst:y:2008:i:91-92:p:16 is not listed on IDEAS
    13. repec:adr:anecst:y:2008:i:91-92 is not listed on IDEAS
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    Cited by:

    1. Nicola Brandt, 2015. "Vocational training and adult learning for better skills in France," OECD Economics Department Working Papers 1260, OECD Publishing.

    More about this item

    Keywords

    training; transition models; unobserved heterogeneity;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • J69 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Other

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