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Do Dropouts Benefit from Training Programs? Korean Evidence Employing Methods for Continuous Treatments

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  • FLORES-LAGUNES Alfonso
  • CHOE Chung
  • LEE Sang-Jun

Abstract

Failure of participants to complete training programs is pervasive in existing active labor market programs both in developed and developing countries. The proportion of dropouts in prototypical programs ranges from 10 to 50 percent of all participants. From a policy perspective, it is of interest to know if dropouts benefit from the time they spend in training since these programs require considerable resources. We shed light on this issue by estimating the average employment effects of different lengths of exposure to a program by dropouts in a Korean job training program. To do this, we employ parametric and semiparametric methods to estimate effects from continuous treatments using the generalized propensity score, under the assumption that selection into different lengths of exposure is based on a rich set of observed covariates. We find that participants who drop out later?thereby having longer exposures?exhibit higher employment probabilities one year after receiving training, and that marginal effects of additional exposure to training are initially fairly small, but increase sharply past a certain threshold of exposure. One implication of these results is that this and similar programs could benefit from providing incentives for participants to stay longer in the program.

Suggested Citation

  • FLORES-LAGUNES Alfonso & CHOE Chung & LEE Sang-Jun, 2011. "Do Dropouts Benefit from Training Programs? Korean Evidence Employing Methods for Continuous Treatments," LISER Working Paper Series 2011-34, LISER.
  • Handle: RePEc:irs:cepswp:2011-34
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    Cited by:

    1. Juan M. Villa, 2014. "The length of exposure to antipoverty transfer programmes: what is the relevance for children's human capital formation?," Global Development Institute Working Paper Series 20614, GDI, The University of Manchester.
    2. Dammert, Ana C. & Galdo, Jose, 2013. "Program quality and treatment completion for youth training programs," Economics Letters, Elsevier, vol. 119(3), pages 243-246.

    More about this item

    Keywords

    Training Programs; Dropouts; Developing Countries; Continuous Treatments; Generalized Propensity Score; Dose-Response Function;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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