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Estimating the Effect of Training on Employment and Unemployment Durations: Evidence From Experimental Data

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  • John C. Ham
  • Robert J. LaLonde

Abstract

Using data from a social experiment, we estimate the impact of training on the duration of employment and unemployment spells for AFDC recipients. Although an experimental design eliminates the need to construct a comparison group for this analysis, simple comparisons between the average durations or the transition rates of treatments' and controls' employment and unemployment spells lead to biased estimates of the effects of training. We present and implement several econometric approaches that demonstrate the importance of and correct for these biases. For the training program studied in the paper, we find that it raised employment rates because employment durations increased. In contrast, training did not lead to shorter unemployment spells.

Suggested Citation

  • John C. Ham & Robert J. LaLonde, 1991. "Estimating the Effect of Training on Employment and Unemployment Durations: Evidence From Experimental Data," NBER Working Papers 3912, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:3912
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    References listed on IDEAS

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    5. Ridder, G, 1986. "An Event History Approach to the Evaluation of Training, Recruitment and Employment Programmes," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(2), pages 109-126, April.
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    8. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
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    12. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-1266, September.
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    Cited by:

    1. Rodokanakis Stavros, 2010. "The Dynamics of Regional Labour Markets and Training Programmes: Greek Evidence," European Spatial Research and Policy, Sciendo, vol. 17(1), pages 93-115, June.
    2. Cockx, Bart & Van der Linden, Bruno & Karaa, Adel, 1998. "Active Labour Market Policies and Job Tenure," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 685-708, October.
    3. Meghir, Costas & Whitehouse, Edward, 1997. "Labour market transitions and retirement of men in the UK," Journal of Econometrics, Elsevier, vol. 79(2), pages 327-354, August.
    4. Rodokanakis Stavros, 2009. "Comparing the Probability of Unemployment in Southern Greece Vis-À-Vis the Entire Country," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 12(12), pages 17-43, January.
    5. Stavros Rodokanakis & Irini Moustaki, 2010. "Evaluating the risk of unemployment: comparison between the two most populated Greek regions with the entire country," IWE Working Papers 194, Institute for World Economics - Centre for Economic and Regional Studies.
    6. Holm, Anders, 2002. "The effect of training on search durations: a random effects approach," Labour Economics, Elsevier, vol. 9(3), pages 433-450, July.
    7. Stavros Rodokanakis, 2010. "A Non-Experimental Evaluation of Unemployment Risk in Crete and the Ionian Islands: Regional Evidence for Greece," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2010(4), pages 44-63.

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