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The Award of a Training Voucher and Labor Market Outcomes

Author

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  • Paul, Marie
  • Dörr, Annabelle
  • Fitzenberger, Bernd
  • Kruppe, Thomas
  • Strittmatter, Anthony

Abstract

This paper estimates the labor market effects of being awarded with a training voucher using an instrumental variable approach. In Germany all public sponsored further training programs are allocated through vouchers and the system, we study here, thus represents a major case of the use of vouchers in the context of active labor market policies. We use process generated data in which we observe all training vouchers awarded in 2003 and 2004 as well as realized training participation. Results suggest that on average voucher recipients suffer from strong lock-in effects and only experience at best small positive employment effects and no earning gains four years after the award of the voucher. Subgroups of treated individuals, like individuals not holding a vocational degree and those participating in a degree program, benefit more.

Suggested Citation

  • Paul, Marie & Dörr, Annabelle & Fitzenberger, Bernd & Kruppe, Thomas & Strittmatter, Anthony, 2013. "The Award of a Training Voucher and Labor Market Outcomes," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79918, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc13:79918
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    References listed on IDEAS

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    Cited by:

    1. Thomas Kruppe & Julia Lang, 2018. "Labour market effects of retraining for the unemployed: the role of occupations," Applied Economics, Taylor & Francis Journals, vol. 50(14), pages 1578-1600, March.
    2. Doerr, Annabelle & Strittmatter, Anthony, 2014. "Assignment Mechanisms, Selection Criteria, and the Effectiveness of Training Programs," Economics Working Paper Series 1421, University of St. Gallen, School of Economics and Political Science, revised May 2017.

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    More about this item

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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