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Assessing The Employment Effects Of Vocational Training Using A One-Factor Model

Author

Listed:
  • Andrén, Thomas

    () (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Andrén, Daniela

    () (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

Matching estimators use observed variables to adjust for differences between groups to eliminate sample selection bias. When minimum relevant information is not available, matching estimates are biased. If access to data on usually unobserved factors that determine the selection process is unavailable, other estimators should be used. This study advocates the one-factor control function estimator that allows for unobserved heterogeneity with factor-loading technique. Treatment effects of vocational training in Sweden are estimated with mean and distributional parameters, and then compared with matching estimates. The results indicate that unobservables slightly increase the treatment effect for those treated.

Suggested Citation

  • Andrén, Thomas & Andrén, Daniela, 2004. "Assessing The Employment Effects Of Vocational Training Using A One-Factor Model," Working Papers in Economics 133, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0133
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    References listed on IDEAS

    as
    1. Mroz, Thomas A., 1999. "Discrete factor approximations in simultaneous equation models: Estimating the impact of a dummy endogenous variable on a continuous outcome," Journal of Econometrics, Elsevier, vol. 92(2), pages 233-274, October.
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    Cited by:

    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. Andersson, Roland & Nabavi Larijani, Pardis & Wilhelmsson, Mats, 2013. "The impact of vocational education and training on income in Sweden," Working Paper Series 13/4, Royal Institute of Technology, Department of Real Estate and Construction Management & Centre for Banking and Finance (cefin).
    3. GÓMEZ , Nuria & TOBARRA, María-Ángeles & LÓPEZ, Luis-Antonio, 2014. "Employment Opportunities In Spain: Gender Differences By Education And Ict Usage," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(3), pages 105-130.
    4. Walter, Thomas & Butschek, Sebastian, 2013. "What Active Labour Market Programmes Work for Immigrants in Europe?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79745, Verein für Socialpolitik / German Economic Association.
    5. Sebastian Butschek & Thomas Walter, 2014. "What active labour market programmes work for immigrants in Europe? A meta-analysis of the evaluation literature," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-18, December.

    More about this item

    Keywords

    vocational training; sorting; unobserved heterogeneity; one-factor model; matching estimator;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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