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The Award of a Training Voucher and Labor Market Outcomes


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


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," 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

    1. Martin Biewen & Bernd Fitzenberger & Aderonke Osikominu & Marie Paul, 2014. "The Effectiveness of Public-Sponsored Training Revisited: The Importance of Data and Methodological Choices," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 837-897.
    2. Gesine Stephan & André Pahnke, 2011. "The Relative Effectiveness Of Selected Active Labor Market Programs: An Empirical Investigation For Germany," Manchester School, University of Manchester, vol. 79(6), pages 1262-1293, December.
    3. Ulf Rinne & Marc Schneider & Arne Uhlendorff, 2011. "Do the skilled and prime-aged unemployed benefit more from training? Effect heterogeneity of public training programmes in Germany," Applied Economics, Taylor & Francis Journals, vol. 43(25), pages 3465-3494.
    4. 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.
    5. Reinhard Hujer & Stephan Thomsen & Christopher Zeiss, 2006. "The effects of vocational training programmes on the duration of unemployment in Eastern Germany," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 90(2), pages 299-321, June.
    6. Fredriksson, Peter & Johansson, Per, 2008. "Dynamic Treatment Assignment," Journal of Business & Economic Statistics, American Statistical Association, vol. 26, pages 435-445.
    7. Marie Paul, 2015. "Many Dropouts ? Never Mind ! - Employment Prospects of Dropouts from Training Programs," Annals of Economics and Statistics, GENES, issue 119-120, pages 235-267.
    8. Rinne, Ulf & Uhlendorff, Arne & Zhao, Zhong, 2008. "Vouchers and Caseworkers in Public Training Programs: Evidence from the Hartz Reform in Germany," IZA Discussion Papers 3910, Institute for the Study of Labor (IZA).
    9. Fitzenberger, Bernd & Osikominu, Aderonke & Paul, Marie, 2010. "The Heterogeneous Effects of Training Incidence and Duration on Labor Market Transitions," IZA Discussion Papers 5269, Institute for the Study of Labor (IZA).
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    Cited by:

    1. 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].
    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.

    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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