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Training the Unemployed in France: How Does It Affect Unemployment Duration and Recurrence?

  • Crépon, Bruno

    ()

    (CREST)

  • Ferracci, Marc

    ()

    (CREST-INSEE)

  • Fougère, Denis

    ()

    (CREST)

Econometric evaluations of public-sponsored training programmes generally find little evidence of an impact of such policies on transition rates out of unemployment. We perform the first evaluation of training effects for the unemployed adults in France, exploiting a unique longitudinal dataset from the unemployment insurance system. Using the so-called timing-of-events methodology to control for both observed and unobserved heterogeneity, we find that training does not accelerate the exit from unemployment, but has a significant and positive effect on the duration of the subsequent employment spell. Accounting for training duration, we find that longer training spells cause longer unemployment spells, but also longer employment spells, suggesting that training improves the matching process between jobseekers and firms.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3215.

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Length: 42 pages
Date of creation: Dec 2007
Date of revision:
Publication status: published in: Annales d'Economie et de Statistique, 2012, 107-108, 175-199.
Handle: RePEc:iza:izadps:dp3215
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  1. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09.
  2. Berg, Gerard J. van den & Klaauw, Bas van der & Ours, Jan C. van, 1998. "Punitive sanctions and the transition rate from welfare to work," Serie Research Memoranda 0033, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  3. Fougere, Denis & Kramarz, Francis & Magnac, Thierry, 2000. "Youth employment policies in France," European Economic Review, Elsevier, vol. 44(4-6), pages 928-942, May.
  4. Lechner, Michael & Miquel, Ruth & Wunsch, Conny, 2004. "Long-Run Effects of Public Sector Sponsored Training in West Germany," IZA Discussion Papers 1443, Institute for the Study of Labor (IZA).
  5. Cockx, Bart & Bardoulat, Isabelle, 1999. "Vocational Training: Does it speed up the Transition Rate out of Unemployment ?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1999032, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  6. Gerfin, Michael & Lechner, Michael, 2000. "Microeconometric Evaluation of the Active Labour Market Policy in Switzerland," IZA Discussion Papers 154, Institute for the Study of Labor (IZA).
  7. 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.
  8. Bonnal, Liliane & Fougere, Denis & Serandon, Anne, 1997. "Evaluating the Impact of French Employment Policies on Individual Labour Market Histories," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 683-713, October.
  9. Lalive, R. & van Ours, J.C. & Zweimüller, J., 2000. "The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment," Discussion Paper 2000-41, Tilburg University, Center for Economic Research.
  10. Jaap H. Abbring & Gerard J. Berg & Jan C. Ours, 2005. "The Effect of Unemployment Insurance Sanctions on the Transition Rate from Unemployment to Employment," Economic Journal, Royal Economic Society, vol. 115(505), pages 602-630, 07.
  11. Sianesi, Barbara, 2008. "Differential effects of active labour market programs for the unemployed," Labour Economics, Elsevier, vol. 15(3), pages 370-399, June.
  12. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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