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

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  • Ulf Rinne
  • Marc Schneider
  • Arne Uhlendorff

Abstract

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.

Suggested Citation

  • Ulf Rinne & Marc Schneider & Arne Uhlendorff, 2007. "Too Bad to Benefit?: Effect Heterogeneity of Public Training Programs," Discussion Papers of DIW Berlin 749, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp749
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    Cited by:

    1. Brück-Klingberg, Andrea & Burkert, Carola & Garloff, Alfred & Seibert, Holger & Wapler, Rüdiger, 2011. "Does higher education help immigrants find a job? : A survival analysis," IAB Discussion Paper 201106, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Annabelle Krause & Ulf Rinne & Simone Schüller, 2015. "Kick It Like Özil? Decomposing the Native-Migrant Education Gap," International Migration Review, Wiley Blackwell, vol. 49(3), pages 757-789, September.
    3. Annabelle Doerr & Bernd Fitzenberger & Thomas Kruppe & Marie Paul & Anthony Strittmatter, 2017. "Employment and Earnings Effects of Awarding Training Vouchers in Germany," ILR Review, Cornell University, ILR School, vol. 70(3), pages 767-812, May.
    4. Marco Caliendo & Jens Hogenacker, 2012. "The German labor market after the Great Recession: successful reforms and future challenges," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-24, December.
    5. Begoña Cueto & Luis Toharia & Carlos García Serrano & Joan A. Alujas, 2010. "Los efectos de la formación ocupacional: ¿Importa la duración de las acciones?," Hacienda Pública Española, IEF, vol. 195(4), pages 9-36, december.
    6. Kluve, Jochen & Schneider, Hilmar & Uhlendorff, Arne & Zhao, Zhong, 2012. "Evaluating continuous training programmes by using the generalized propensity score," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 587-617.
    7. Badescu, Mircea & Garrouste, Christelle & Loi, Massimo, 2012. "The distribution of adult training among European unemployed: Evidence from recent surveys," MPRA Paper 49960, University Library of Munich, Germany.
    8. Tyrowicz, Joanna, 2009. "When Eastern Labour Markets Enter Western Europe CEECs. Labour Market Institutions upon Euro Zone Accession," MPRA Paper 15045, University Library of Munich, Germany.
    9. Moritz Zöllner & Michael Fritsch & Michael Wyrwich, 2016. "An Evaluation of German Active Labor Market Policies and its Entrepreneurship Promotion," Jena Economic Research Papers 2016-022, Friedrich-Schiller-University Jena.
    10. Uhl, Maria & Rebien, Martina & Abraham, Martin, 2016. "Welche Ein-Euro-Jobber werden qualifiziert? : Qualifizierungsmaßnahmen im Rahmen von Arbeitsgelegenheiten mit Mehraufwandsentschädigung für Arbeitslosengeld-II-Empfänger," IAB Discussion Paper 201633, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Stephan, Gesine & Zickert, Kathi, 2008. "Participation of unemployment benefit recipients in active labor market programs : before and after the German labor market reforms," IAB Discussion Paper 200815, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    12. Ulf Rinne & Arne Uhlendorff & Zhong Zhao, 2013. "Vouchers and caseworkers in training programs for the unemployed," Empirical Economics, Springer, vol. 45(3), pages 1089-1127, December.
    13. Waller, Marie, 2008. "Further training for the unemployed : what can we learn about dropouts from administrative data?," FDZ Methodenreport 200804_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Meinke, Kai S., 2010. "Employment and continuing vocational training (CVT) in the German Microcensus of the year 2003," Kiel Working Papers 1643, Kiel Institute for the World Economy (IfW).
    15. Sarah Bernhard & Thomas Kruppe, 2012. "Effectiveness of Further Vocational Training in Germany – Empirical Findings for Persons Receiving Means-tested Unemployment Benefits," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 132(4), pages 501-526.
    16. Doerr, Annabelle & Strittmatter, Anthony, 2014. "Assignment Mechanisms, Selection Criteria, and the Effectiveness of Training Programs," Economics Working Paper Series 1421, University of St. Gallen, School of Economics and Political Science, revised May 2017.
    17. Bernhard, Sarah & Hohmeyer, Katrin & Jozwiak, Eva & Koch, Susanne & Kruppe, Thomas & Stephan, Gesine & Wolff, Joachim, 2008. "Aktive Arbeitsmarktpolitik in Deutschland und ihre Wirkungen," IAB-Forschungsbericht 200802, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    18. Paul, Marie & Dörr, Annabelle & Fitzenberger, Bernd & Kruppe, Thomas & Strittmatter, Anthony, 2013. "The Award of a Training Voucher and Labor Market Outcomes," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79918, Verein für Socialpolitik / German Economic Association.
    19. Stephan, Gesine & Pahnke, André, 2008. "The Relative Effectiveness of Selected Active Labour Market Programmes and the Common Support Problem," IZA Discussion Papers 3767, Institute for the Study of Labor (IZA).
    20. Andersen, Signe Hald, 2011. "Exiting unemployment: How do program effects depend on individual coping strategies?," Journal of Economic Psychology, Elsevier, vol. 32(2), pages 248-258, March.
    21. Anthony Strittmatter, 2016. "What effect do vocational training vouchers have on the unemployed?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 316-316, November.
    22. Werner Eichhorst, 2008. "Die Agenda 2010 und die Grundsicherung für Arbeitsuchende," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 77(1), pages 38-50.
    23. Gerd Heyer & Susanne Koch & Gesine Stephan & Joachim Wolff, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(1), pages 41-62, March.
    24. Floreani, Vincent Arthur, 2014. "Fixing Europe's youth unemployment and skills mismatch, can public financial support to SMEs be effective? The case of the European Commission and European Investment Bank joint initiatives," MPRA Paper 55849, University Library of Munich, Germany.

    More about this item

    Keywords

    Program Evaluation; Active Labor Market Policy; Effect Heterogeneity; Public Training Programs; Matching;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • 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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