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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.

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File URL: http://econstor.eu/bitstream/10419/79918/1/VfS_2013_pid_330.pdf
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Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order with number 79918.

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Date of creation: 2013
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Handle: RePEc:zbw:vfsc13:79918
Contact details of provider: Web page: http://www.socialpolitik.org/
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  1. 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.
  2. Rinne, Ulf & Schneider, Marc & Uhlendorff, Arne, 2007. "Too Bad to Benefit? Effect Heterogeneity of Public Training Programs," IZA Discussion Papers 3240, Institute for the Study of Labor (IZA).
  3. 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.
  4. 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).
  5. Fredriksson, Peter & Johansson, Per, 2008. "Dynamic Treatment Assignment," Journal of Business & Economic Statistics, American Statistical Association, vol. 26, pages 435-445.
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