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The Contribution of Vocational Training to Employment, Job-Related Skills and Productivity: Evidence from Madeira Island

  • Budría, Santiago


    (Universidade da Madeira)

  • Pereira, Pedro T.


    (University of Madeira)

In this paper, we analyze the transition to the labour market of participants in vocational training in Madeira Island. In a first stage, we investigate how the employment status at different dates (one month, one year, and two years after the completion of the training program) depends on relevant variables, such as age, gender, education and the content and duration of the training. In a second stage, we use the individuals’ self-assessment regarding the effectiveness of the training program along three dimensions: employment, job-related skills and productivity. We find that respondents score training activities high in every dimension. Moreover, we find that training is more effective among the educated, indicating that vocational training is far from being remedial. We also find that long training programs and training in the area of tourism are particularly effective.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3462.

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Length: 34 pages
Date of creation: Apr 2008
Date of revision:
Publication status: published in: International Journal of Training and Development, 2009, 13(1), 53-72
Handle: RePEc:iza:izadps:dp3462
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  1. Fitzenberger, Bernd & Volter, Robert, 2007. "Long-run effects of training programs for the unemployed in East Germany," Labour Economics, Elsevier, vol. 14(4), pages 730-755, August.
  2. Jespersen, Svend T. & Munch, Jakob R. & Skipper, Lars, 2008. "Costs and benefits of Danish active labour market programmes," Labour Economics, Elsevier, vol. 15(5), pages 859-884, October.
  3. Richardson, Katarina & van den Berg, Gerard J., 2002. "The effect of vocational employment training on the individual transition rate from unemployment to work," Working Paper Series 2002:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  4. Lorraine Dearden & Howard Reed & John Van Reenen, 2005. "The Impact of Training on Productivity and Wages: Evidence from British Panel Data," CEP Discussion Papers dp0674, Centre for Economic Performance, LSE.
  5. Hujer, Reinhard & Thomsen, Stephan L. & Zeiss, Christopher, 2004. "The Effects of Vocational Training Programmes on the Duration of Unemployment in Eastern Germany," IZA Discussion Papers 1117, Institute for the Study of Labor (IZA).
  6. Brunello, Giorgio, 2001. "On the Complementarity between Education and Training in Europe," IZA Discussion Papers 309, Institute for the Study of Labor (IZA).
  7. Martins, Pedro S. & Pereira, Pedro T., 2004. "Does education reduce wage inequality? Quantile regression evidence from 16 countries," Labour Economics, Elsevier, vol. 11(3), pages 355-371, June.
  8. Séamus McGuinness, 2006. "Overeducation in the Labour Market," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 387-418, 07.
  9. Budría, Santiago & Moro-Egido, Ana I., 2008. "Education, educational mismatch, and wage inequality: Evidence for Spain," Economics of Education Review, Elsevier, vol. 27(3), pages 332-341, June.
  10. Richard Blundell & Lorraine Dearden & Costas Meghir & Barbara Sianesi, 1999. "Human capital investment: the returns from education and training to the individual, the firm and the economy," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 1-23, March.
  11. Lisa M. Lynch, 1989. "Private Sector Training and its Impact on the Earnings of Young Workers," NBER Working Papers 2872, National Bureau of Economic Research, Inc.
  12. Holm, Anders, 2002. "The effect of training on search durations: a random effects approach," Labour Economics, Elsevier, vol. 9(3), pages 433-450, July.
  13. Conti, Gabriella, 2005. "Training, productivity and wages in Italy," Labour Economics, Elsevier, vol. 12(4), pages 557-576, August.
  14. Santiago Budria & Javier Díaz-Jiménez, 2005. "Economic Inequality in Spain: The European Union Household Panel Dataset," Labor and Demography 0505001, EconWPA.
  15. Santiago Budria & Pedro Telhado Pereira, 2007. "The wage effects of training in Portugal: differences across skill groups, genders, sectors and training types," Applied Economics, Taylor & Francis Journals, vol. 39(6), pages 787-807.
  16. John Bishop, 1994. "The Impact of Previous Training on Productivity and Wages," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 161-200 National Bureau of Economic Research, Inc.
  17. 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.
  18. 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.
  19. Black, Sandra E & Lynch, Lisa M, 1996. "Human-Capital Investments and Productivity," American Economic Review, American Economic Association, vol. 86(2), pages 263-67, May.
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