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Too Bad to Benefit?: Effect Heterogeneity of Public Training Programs

  • Ulf Rinne
  • Marc Schneider
  • Arne Uhlendorff

This study analyzes the treatment effects of public training programs for the unemployed in Germany. Based on propensity score matching methods we extend the picture that has been sketched in previous studies by estimating treatment effects of medium-term programs for different sub-groups with respect to vocational education and age. Our results indicate that program participation has a positive impact on employment probabilities for all sub-groups. Participants also seem to find more often higher paid jobs than non-participants. However, we find only little evidence for the presence of heterogeneous treatment effects, and the magnitude of the differences is quite small. Our results are thus - at least in part - conflicting with the strategy to increasingly provide training to individuals with better employment prospects.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.77255.de/dp749.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 749.

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Length: 43 p.
Date of creation: 2007
Date of revision:
Handle: RePEc:diw:diwwpp:dp749
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  1. Michael Lechner & Ruth Miquel & Conny Wunsch, 2007. "The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification," German Economic Review, Verein für Socialpolitik, vol. 8, pages 468-509, November.
  2. Michael Lechner & Blaise Melly, 2007. "Earnings Effects of Training Programs," University of St. Gallen Department of Economics working paper series 2007 2007-28, Department of Economics, University of St. Gallen.
  3. Lechner, Michael & Wunsch, Conny, 2007. "What Did All the Money Do? On the General Ineffectiveness of Recent West German Labour Market Programmes," CEPR Discussion Papers 6306, C.E.P.R. Discussion Papers.
  4. van Ours, Jan C., 2004. "The locking-in effect of subsidized jobs," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 37-55, March.
  5. Biewen, Martin & Fitzenberger, Bernd & Osikominu, Aderonke & Waller, Marie, 2007. "Which Program for Whom? Evidence on the Comparative Effectiveness of Public Sponsored Training Programs in Germany," IZA Discussion Papers 2885, Institute for the Study of Labor (IZA).
  6. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
  7. Reinhard Hujer & Stephan Thomsen & Christopher Zeiss, 2006. "The effects of vocational training programmes on the duration of unemployment in Eastern Germany," AStA Advances in Statistical Analysis, Springer, vol. 90(2), pages 299-321, June.
  8. Fitzenberger, Bernd & Osikominu, Aderonke & Völter, Robert, 2006. "Get training or wait? : long-run employment effects of training programs for the unemployed in West Germany," IAB Discussion Paper 200617, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  9. Mueser, Peter R. & Troske, Kenneth & Gorislavsky, Alexey, 2003. "Using State Administrative Data to Measure Program Performance," IZA Discussion Papers 786, Institute for the Study of Labor (IZA).
  10. Marco Caliendo & Sabine Kopeinig, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," Discussion Papers of DIW Berlin 485, DIW Berlin, German Institute for Economic Research.
  11. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20035, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  12. van Ours, J.C., 2004. "The locking-in effect of subsidized jobs," Other publications TiSEM c4fd99a1-4c2f-46c6-9ee2-3, Tilburg University, School of Economics and Management.
  13. Lechner, Michael, 1999. "Earnings and Employment Effects of Continuous Off-the-Job Training in East Germany after Unification," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(1), pages 74-90, January.
  14. Marco Caliendo & Viktor Steiner, 2005. "Aktive Arbeitsmarktpolitik in Deutschland: Bestandsaufnahme und Bewertung der mikroökonomischen Evaluationsergebnisse," Discussion Papers of DIW Berlin 515, DIW Berlin, German Institute for Economic Research.
  15. Eichhorst, Werner & Zimmermann, Klaus F, 2007. "And Then There Were Four... How Many (and Which) Measures of Active Labour Market Policy Do We Still Need?," CEPR Discussion Papers 6246, C.E.P.R. Discussion Papers.
  16. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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