Measuring the Effect of Subsidized Training Programs on Movements In andOut of Employment
We present a variety of alternative estimates of the effect of training on the probability of employment for adult male participants in the 1976 Comprehensive Employment and Training Act (CETA) program. Our results suggest that CETA participation increased the probability of employment in the three years after training by from 2 to 5 percentage points. Classroom training programs appear to have had significantly larger effects than on-the--job programs, although the estimated effects of both kinds of programs are consistently positive. We also find that movements in and out of employment for the trainees and a control group of nonparticipants are reasonably well described by a first-order Markov process, conditional on individual heterogeneity. In the context of this model, CETA participation appears to have increased both the probability of moving into employment, and the probability of continuing employment.
|Date of creation:||Feb 1987|
|Date of revision:|
|Publication status:||published as Econometrica, Vol. 56, (May 1988).|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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- Ashenfelter, Orley & Card, David, 1985.
"Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs,"
The Review of Economics and Statistics,
MIT Press, vol. 67(4), pages 648-60, November.
- Orley Ashenfelter & David Card, 1984. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," NBER Working Papers 1489, National Bureau of Economic Research, Inc.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September.
- Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 225-238.
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