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The Effectiveness of Qualification Measures for Employed Workers – An Evaluation Study for Saxony

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  • Fertig, Michael

    (ISG, Cologne)

Abstract

This paper investigates whether and to what extent employment policy measures (co-) financed by the European Social Fund in Germany meet their objective. Specifically, it is analyzed whether qualification programs for employed workers in the German state of Saxony were effective in terms of employment protection. To this end, a control function approach is implemented which utilizes a unique firm-level dataset. This model explicitly accounts for unobserved heterogeneity between participating and non-participating companies by modeling the participation decision process. Our results suggest a positive effect of program participation. However, this positive treatment effect varies considerably across different sub-groups of the treatment as well as the comparison group.

Suggested Citation

  • Fertig, Michael, 2004. "The Effectiveness of Qualification Measures for Employed Workers – An Evaluation Study for Saxony," IZA Discussion Papers 1205, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1205
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    1. Michael Lechner, 2000. "An Evaluation of Public-Sector-Sponsored Continuous Vocational Training Programs in East Germany," Journal of Human Resources, University of Wisconsin Press, vol. 35(2), pages 347-375.
    2. Fertig, Michael & Schmidt, Christoph M. & Schneider, Hilmar, 2006. "Active labor market policy in Germany--Is there a successful policy strategy?," Regional Science and Urban Economics, Elsevier, vol. 36(3), pages 399-430, May.
    3. Hujer Reinhard & Maurer Kai-Oliver & Wellner Marc, 1999. "Estimating the Effect of Vocational Training on Unemployment Duration in West Germany / Auswirkungen beruflicher Weiterbildung auf die Arbeitslosigkeitsdauer in Westdeutschland: A Discrete Hazard Rate," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 218(5-6), pages 619-646, October.
    4. Michael Lechner, 1999. "Nonparametric bounds on employment and income effects of continuous vocational training in East Germany," Econometrics Journal, Royal Economic Society, vol. 2(1), pages 1-28.
    5. Calmfors, Lars & Skedinger, Per, 1995. "Does Active Labour-Market Policy Increase Employment? Theoretical Considerations and Some Empirical Evidence from Sweden," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 11(1), pages 91-109, Spring.
    6. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    7. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment? [‘The non-parametric identification of treatment effects in duration models’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 17(35), pages 409-448.
    8. Reinhard Hujer & Uwe Blien & Marco Caliendo & Christopher Zeiss, 2006. "Macroeconometric Evaluation of Active Labour Market Policies in Germany. A Dynamic Panel Approach Using Regional Data," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Sergio Destefanis (ed.), The European Labour Market, chapter 13, pages 287-309, Springer.
    9. Fertig, Michael & Schmidt, Christoph M., 2000. "Discretionary Measures of Active Labor Market Policy: The German Employment Promotion Reform in Perspective," IZA Discussion Papers 182, Institute of Labor Economics (IZA).
    10. Fitzenberger, Bernd & Prey, Hedwig, 2000. "Evaluating Public Sector Sponsored Training in East Germany," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 497-520, July.
    11. Vella, Francis & Verbeek, Marno, 1999. "Estimating and Interpreting Models with Endogenous Treatment Effects," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(4), pages 473-478, October.
    12. repec:hhs:iuiwop:429 is not listed on IDEAS
    13. Lechner, Michael, 1999. "Earnings and Employment Effects of Continuous Off-the-Job Training in East Germany after Unification," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(1), pages 74-90, January.
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    Cited by:

    1. Reinowski, Eva & Schultz, Birgit, 2006. "Microeconometric Evaluation of Selected ESF-funded ALMP-Programmes," IWH Discussion Papers 17/2006, Halle Institute for Economic Research (IWH).
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    More about this item

    Keywords

    firm-level data; European Social Fund; employment policy;
    All these keywords.

    JEL classification:

    • 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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