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Does Unemployed Training Increase Individual Employability? Evidence from Latvian Microdata

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  • Jekaterina Dmitrijeva

    () (EPEE, Université d’Evry-Val-d’Essonne)

Abstract

In this paper we evaluate the efficiency of unemployed training programmes in Latvia, using propensity score matching. Primary data files provided by the State Employment Agency of Latvia are used to construct the individual database of unemployed and programme participants. Available data allow evaluating the following programs: (i) unemployed occupational training (vocational training, re-qualification and rising of qualifications); (ii) state language training for non - Latvians; (iii) modular training programme (training in foreign language, computer literacy, project management and business operation, driving). We investigate the impact of participation in each of those programs on the unemployed transition to employment, examine heterogeneity in programme effect across different so- cio - demographic (gender, age, education) and regional groups and try to establish an empirical link between targeting of the programme and its efficiency. We also test the sensitivity of our results to the so called ”hidden” bias. The results reveal that the participation in occupational training always increases indi- vidual employability, while the effects of modular training in state language are often insignificant and the effects of modular training in other skills are weak and only appear in a long run. The effect of occupational training does not vary significantly with respect to the gender or ethnicity, but it is heterogenous with respect to the age (stronger among young unemployed) education (increasing in its level), working experience of the unem- ployed or their region of residence. The effect of modular training is higher among men, unemployed without work experience and rural area inhabitants, while modular training in other skills has the strongest impact on women, young unemployed, unemployed without work experience and Latvians.

Suggested Citation

  • Jekaterina Dmitrijeva, 2008. "Does Unemployed Training Increase Individual Employability? Evidence from Latvian Microdata," Documents de recherche 08-04, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
  • Handle: RePEc:eve:wpaper:08-04
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    File URL: http://epee.univ-evry.fr/RePEc/2008/08-04.pdf
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    References listed on IDEAS

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    1. Marco Caliendo & Reinhard Hujer & Stephan Thomsen, 2008. "Identifying effect heterogeneity to improve the efficiency of job creation schemes in Germany," Applied Economics, Taylor & Francis Journals, vol. 40(9), pages 1101-1122.
    2. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    3. Jekaterina Dmitrijeva & Mihails Hazans, 2007. "A Stock-Flow Matching Approach to Evaluation of Public Training Programme in a High Unemployment Environment," LABOUR, CEIS, vol. 21(3), pages 503-540, September.
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    5. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    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. Fredriksson, Peter & Johansson, Per, 2003. "Employment, Mobility, and Active Labor Market Programs," Working Paper Series 2003:5, Uppsala University, Department of Economics.
    8. Caliendo, Marco & Hujer, Reinhard & Thomsen, Stephan L., 2005. "The Employment Effects of Job Creation Schemes in Germany: A Microeconometric Evaluation," IZA Discussion Papers 1512, Institute for the Study of Labor (IZA).
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    More about this item

    Keywords

    policy evaluation; unemployed training; propensity score matching; sensitivity analysis;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • 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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