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The effect of vocational employment training on the individual transition rate from unemployment to work

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Abstract

Amongst the active labor market policy programs for the unemployed in Sweden, the vocational employment training program is the most ambitious and expensive. We analyze its effect on the individual transition rate from unemployment to employment using a unique set of administrative data and a novel empirical approach that exploits variation in the timing of training and exit to work. The approach involves the estimation of duration models, and it allows us to quantify the individual effect of training in the presence of selectivity on unobservables. The data contain the full population of unemployed in the period 1993-2000 and include multiple unemployment spells for many individuals. The results indicate a significantly positive effect on exit to work after exiting the program. Its magnitude is very large shortly after leaving the course but diminishes afterwards. If we also take account of the time spent in the program then the net effect of participation in the program on the mean unemployment duration is close to zero.

Suggested Citation

  • Richardson, Katarina & van den Berg, Gerard J., 2002. "The effect of vocational employment training on the individual transition rate from unemployment to work," Working Paper Series 2002:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2002_008
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    Citations

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    Cited by:

    1. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    2. repec:zbw:rwirep:0086 is not listed on IDEAS
    3. Budría, Santiago & Pereira, Pedro T., 2008. "The Contribution of Vocational Training to Employment, Job-Related Skills and Productivity: Evidence from Madeira Island," IZA Discussion Papers 3462, Institute of Labor Economics (IZA).
    4. Clausen, Jens & Heinesen, Eskil & Hummelgaard, Hans & Husted, Leif & Rosholm, Michael, 2009. "The effect of integration policies on the time until regular employment of newly arrived immigrants: Evidence from Denmark," Labour Economics, Elsevier, vol. 16(4), pages 409-417, August.
    5. Albrecht, James & van den Berg, Gerard J & Vroman, Susan, 2004. "The knowledge lift: The Swedish adult education program that aimed to eliminate low worker skill levels," Working Paper Series 2004:17, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    6. Delander, Lennart & Månsson, Jonas, 2007. "Forensic evaluation: A strategy for and results of an impact evaluation of a universal labor market program - The Swedish activity guarantee," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-102, WZB Berlin Social Science Center.
    7. Graversen, Brian Krogh & van Ours, Jan C., 2006. "How to Help Unemployed Find Jobs Quickly: Experimental Evidence from a Mandatory Activation Program," IZA Discussion Papers 2504, Institute of Labor Economics (IZA).
    8. Kluve, Jochen, 2006. "The Effectiveness of European Active Labor Market Policy," IZA Discussion Papers 2018, Institute of Labor Economics (IZA).
    9. Opoku Nyarko, Christopher & Baah-Boateng, William & Nketiah-Amponsah, Edward, 2014. "The Effect of Search Effort on the transition from Unemployment to Work: Evidence from a Cross Section of Ghanaian Formal Sector Workers," MPRA Paper 109691, University Library of Munich, Germany.
    10. Hujer, Reinhard & Thomsen, Stephan L. & Zeiss, Christopher, 2006. "The effects of short-term training measures on the individual unemployment duration in West Germany," ZEW Discussion Papers 06-065, ZEW - Leibniz Centre for European Economic Research.
    11. Zhang, Tao, 2003. "A Monte Carlo study on non-parametric estimation of duration models with unobserved heterogeneity," Memorandum 25/2003, Oslo University, Department of Economics.
    12. Jaap Abbring & Gerard Van Den Berg, 2005. "Social experiments and instrumental variables with duration outcomes," IFS Working Papers W05/19, Institute for Fiscal Studies.
    13. Michael Rosholm & Michael Svarer, 2004. "Estimating the Threat Effect of Active Labour Market Programmes," CAM Working Papers 2004-14, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    14. Rosholm, Michael, 2008. "Experimental Evidence on the Nature of the Danish Employment Miracle," Working Papers 08-14, University of Aarhus, Aarhus School of Business, Department of Economics.
    15. Sami Ullah & Zilakat K. Malik, 2020. "Analysis of the Determinants of Participation, Strengths and Weaknesses of Vocational Trainings of Federally Administered Tribal Area's Development Authority," International Journal of Economics and Financial Issues, Econjournals, vol. 10(3), pages 149-157.
    16. Lee, Joseph S. & Hsin, Ping-Lung, 2004. "Employee training and human capital in Taiwan," Journal of World Business, Elsevier, vol. 39(4), pages 362-376, November.
    17. Fredriksson, Peter & Johansson, Per, 2002. "Program Evaluation and Random Program Starts," Working Paper Series 2003:1, Uppsala University, Department of Economics.
    18. Ana Gorenca & Theodhor Kuro, 2018. "The Sensitivity of the Effect of on-the-Job Training on Employment Outcomes in Experimental and Non-Experimental Settings," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(5), pages 141-153, OCTOBER.
    19. 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;German Statistical Society, vol. 90(2), pages 299-321, June.
    20. van Ours, Jan C. & Krogh Graversen, Brian, 2007. "How to Help Unemployed Find Jobs Quickly; Experimental Evidence from a Mandatory Activation Program," CEPR Discussion Papers 6057, C.E.P.R. Discussion Papers.
    21. David Card & Jochen Kluve & Andrea Weber, 2009. "Active Labor Market Policy Evaluations – A Meta-analysis," Ruhr Economic Papers 0086, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    22. Miguel Baiao & Ilze Buligina, 2021. "Work Experience Led Programs and Employment Attainment," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 180-198.
    23. Falavigna Falavigna & Elena Ragazzi & Lisa Sella, "undated". "Vocational training and labour market: inclusion or segregation paths? An integrated approach on immigrant trainees in Piedmont," CERIS Working Paper 201425, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    24. Weber, Andrea & Hofer, Helmut, 2003. "Active Job-search Programs a Promising Tool? A Microeconometric Evaluation for Austria," Economics Series 131, Institute for Advanced Studies.

    More about this item

    Keywords

    Vocational training; program evaluation; duration analysis; Swedish labor market; selectivity bias; treatment effect;
    All these keywords.

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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

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