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Get Training or Wait? Long-Run Employment Effects of Training Programs for the Unemployed in West Germany

Author Info

  • Fitzenberger, Bernd

    ()

    (Humboldt University Berlin)

  • Osikominu, Aderonke

    ()

    (University of Hohenheim)

  • Völter, Robert

    ()

    (Goethe University Frankfurt)

Abstract

Long-term public sector sponsored training programs often show little or negative short-run employment effects and often it is not possible to assess whether positive long-run effects exist. Based on unique administrative data, this paper estimates the long-run differential employment effects of three different types of training programs in West Germany. We use inflows into unemployment for the years 1986/87 and 1993/94 and apply local linear matching based on the estimated propensity score to estimate the effects of training programs starting during 1 to 2, 3 to 4, and 5 to 8 quarters of unemployment. The results show a negative lock-in effect for the period right after the beginning of the program and significantly positive treatment effects on employment rates in the medium- and long-run. The differential effects of the three programs compared to one another are mainly driven by differences in the length of the lock-in periods.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2121.

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Length: 57 pages
Date of creation: May 2006
Date of revision:
Handle: RePEc:iza:izadps:dp2121
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Keywords: administrative data; local linear matching; employment effects; training programs; multiple treatments; active labor market programs;

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Find related papers by JEL classification:
  • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
  • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
  • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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  10. Miquel, Ruth & Lechner, Michael & Wunsch, Conny, 2005. "Long-Run Effects of Public Sector Sponsored Training in West Germany," ZEW Discussion Papers 05-02, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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  15. Guido W. Imbens, 1999. "The Role of the Propensity Score in Estimating Dose-Response Functions," NBER Technical Working Papers 0237, National Bureau of Economic Research, Inc.
  16. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," Review of Economic Studies, Oxford University Press, vol. 65(2), pages 261-294.
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  19. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
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