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

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  • Crépon, Bruno

    () (CREST)

  • Ferracci, Marc

    () (CREST-INSEE)

  • Fougère, Denis

    () (Sciences Po, Paris)

Abstract

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.

Suggested Citation

  • Crépon, Bruno & Ferracci, Marc & Fougère, Denis, 2007. "Training the Unemployed in France: How Does It Affect Unemployment Duration and Recurrence?," IZA Discussion Papers 3215, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp3215
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    References listed on IDEAS

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    Cited by:

    1. Picchio, Matteo & van Ours, Jan C., 2013. "Retaining through training even for older workers," Economics of Education Review, Elsevier, vol. 32(C), pages 29-48.
    2. Muller, Paul & van der Klaauw, Bas & Heyma, Arjan, 2017. "Comparing Econometric Methods to Empirically Evaluate Job-Search Assistance," Working Papers in Economics 691, University of Gothenburg, Department of Economics.
    3. Kelly, Elish & McGuinness, Seamus & O'Connell, Philip J., 2011. "What Can Active Labour Market Policies Do?," Papers EC1, Economic and Social Research Institute (ESRI).
    4. Kruppe, Thomas & Lang, Julia, 2014. "Labour market effects of retraining for the unemployed : the role of occupations," IAB Discussion Paper 201420, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Marco Caliendo & Armin Falk & Lutz C. Kaiser & Hilmar Schneider & Arne Uhlendorff & Gerard van den Berg & Klaus F. Zimmermann, 2011. "The IZA Evaluation Dataset: towards evidence-based labor policy making," International Journal of Manpower, Emerald Group Publishing, vol. 32(7), pages 731-752, October.
    6. Aderonke Osikominu, 2013. "Quick Job Entry or Long-Term Human Capital Development? The Dynamic Effects of Alternative Training Schemes," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 313-342.
    7. Marc FERRACCI & Grégory JOLIVET & Gerard J van den Berg, 2009. "Treatment Evaluation in the Case of Interaction Within Markets," Working Papers 2009-22, Center for Research in Economics and Statistics.
    8. Tyrowicz, Joanna, 2009. "When Eastern Labour Markets Enter Western Europe CEECs. Labour Market Institutions upon Euro Zone Accession," MPRA Paper 15045, University Library of Munich, Germany.
    9. Govert Bijwaard & Stijn Doeselaar, 2014. "The impact of changes in the marital status on return migration of family migrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(4), pages 961-997, October.
    10. Sarah Bernhard & Thomas Kruppe, 2012. "Effectiveness of Further Vocational Training in Germany – Empirical Findings for Persons Receiving Means-tested Unemployment Benefits," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 132(4), pages 501-526.
    11. Paula Garda & Volker Ziemann, 2014. "Economic Policies and Microeconomic Stability: A Literature Review and Some Empirics," OECD Economics Department Working Papers 1115, OECD Publishing.
    12. Fervers, Lukas & Brändle, Tobias & Webel, Carina, 2014. "Decomposing a Matching Estimation - Correlated Unobserved non-random Selection, Substitution, and Causal Effects in a Large Scale ALMP Program in Germany," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100500, Verein für Socialpolitik / German Economic Association.
    13. Seamus McGuinness & Philip J. O'Connell & Elish Kelly, 2014. "The Impact of Training Programme Type and Duration on the Employment Chances of the Unemployed in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 45(3), pages 425-450.
    14. Nicola Brandt, 2015. "Vocational training and adult learning for better skills in France," OECD Economics Department Working Papers 1260, OECD Publishing.
    15. Denis Anne & Julie Le Gallo & Yannick L'Horty, 2018. "Faciliter la mobilité quotidienne des jeunes éloignés de l’emploi : une évaluation expérimentale," TEPP Research Report 2018-02, TEPP.
    16. Berg, Gerard J. van den & Bonev, Petyo & Mammen, Enno, 2016. "Nonparametric instrumental variable methods for dynamic treatment evaluation," Working Papers 16-02, University of Mannheim, Department of Economics.
    17. Anna Ruzik-Sierdzinska & Claudia Villosio & Michele Belloni & Maciej Lis & Monika Potoczna, 2013. "Age and productivity. Human Capital Accumulation and Depreciation," CASE Network Reports 0114, CASE-Center for Social and Economic Research.
    18. Isabelle Benoteau, 2015. "Quels effets du recrutement en contrat aidé sur la trajectoire professionnelle ? Une évaluation à partir du Panel 2008," Économie et Statistique, Programme National Persée, vol. 477(1), pages 85-129.
    19. Piotr Lewandowski & Pawel Chrostek & Jan Baran & Iga Magda & Maciej Lis & Anna Pankowiec & Piotr Szczerba & Maciej Bitner & Magdalena Kaminska, 2014. "Employment in Poland 2013. Labour in the Age of Structural Change," Books and Reports published by IBS, Instytut Badan Strukturalnych, number zwp2013 edited by Piotr Lewandowski & Iga Magda.
    20. Wulfgramm, Melike & Fervers, Lukas, 2013. "Unemployment and Subsequent Employment Stability: Does Labour Market Policy Matter?," IZA Discussion Papers 7193, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    unobserved heterogeneity; multiple spells; unemployment duration; training programmes;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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