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Employment and earnings effects of awarding training vouchers in Germany

Author

Listed:
  • Doerr, Annabelle
  • Fitzenberger, Bernd

    (IFS ; IZA ; ROA ; University of Freiburg ; ZEW)

  • Kruppe, Thomas

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Paul, Marie

    (University of Duisburg-Essen)

  • Strittmatter, Anthony

    (University of Freiburg ; University St. Gallen)

Abstract

"In 2003, Germany moved from a system in which participants in training programs for the unemployed are assigned by caseworkers to an allocation system using vouchers. Based on the rich administrative data for all vouchers and on actual program participation, we provide inverse probability weighting and ordinary least squares estimates of the employment and earnings effects of a voucher award. Our results imply that after the award, voucher recipients experience long periods of lower labor market success. On average, there are only small positive employment effects and no gains in earnings even four years after the voucher award. However, we do find significantly positive effects both for lowskilled individuals and for degree courses. The strong positive selection effects implied by our estimates are consistent with sizeable cream-skimming effects." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Doerr, Annabelle & Fitzenberger, Bernd & Kruppe, Thomas & Paul, Marie & Strittmatter, Anthony, 2014. "Employment and earnings effects of awarding training vouchers in Germany," IAB-Discussion Paper 201423, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201423
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Alexander Spermann, 2015. "How to fight long-term unemployment: lessons from Germany," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-15, December.
    2. Martin Huber & Michael Lechner & Anthony Strittmatter, 2018. "Direct and indirect effects of training vouchers for the unemployed," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 181(2), pages 441-463, February.
    3. Nadine Fabritz & Oliver Falck, 2016. "Human Capital in Croatia," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(01), pages 39-42, April.
    4. Dauth, Christine, 2017. "Regional discontinuities and the effectiveness of further training subsidies for low-skilled employees," IAB-Discussion Paper 201707, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Doerr, Annabelle, 2017. "Back to work: The Long-term Effects of Vocational Training for Female Job Returners," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168213, Verein für Socialpolitik / German Economic Association.
    6. Stephan, Gesine & Uthmann, Sven, 2014. "Akzeptanz von Vergeltungsmaßnahmen am Arbeitsplatz : Befunde aus einer quasi-experimentellen Untersuchung," IAB-Discussion Paper 201427, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Brussig, Martin & Kirsch, Johannes & Schilling, Katharina & Kirchmann, Andrea & Klee, Günther & Kusche, Michel & Maier, Anastasia & Scheu, Tobias, 2022. "Arbeitsförderung von Geflüchteten - Maßnahmen zur Aktivierung und beruflichen Eingliederung," IAQ-Report 2022-03, University of Duisburg-Essen, Institute for Work, Skills and Training (IAQ).
    8. Spermann, Alexander, 2014. "Zehn Jahre Hartz IV – Was hilft Langzeitarbeitslosen wirklich?," IZA Standpunkte 76, Institute of Labor Economics (IZA).
    9. Michael Lechner & Anthony Strittmatter, 2019. "Practical procedures to deal with common support problems in matching estimation," Econometric Reviews, Taylor & Francis Journals, vol. 38(2), pages 193-207, February.
    10. Boockmann Bernhard & Brändle Tobias, 2019. "Coaching, Counseling, Case-Working: Do They Help the Older Unemployed Out of Benefit Receipt and Back Into the Labor Market?," German Economic Review, De Gruyter, vol. 20(4), pages 436-468, December.
    11. Bläsche, Alexandra & Brandherm, Ruth & Eckhardt, Christoph & Käpplinger, Bernd & Knuth, Matthias & Kruppe, Thomas & Kuhnhenne, Michaela & Schütt, Petra, 2017. "Qualitätsoffensive strukturierte Weiterbildung in Deutschland," Working Paper Forschungsförderung 025, Hans-Böckler-Stiftung, Düsseldorf.
    12. Rainer Eppel, 2017. "The Effects of a Job-Creation Scheme: Evidence from Regional Variation in Program Capacities," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(1), pages 161-190, January.

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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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