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Get Training or Wait? Long-Run Employment Effects of Training Programs for the Unemployed in West Germany


Fitzenberger, Bernd ; Osikominu, Aderonke ; Völter, Robert

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URL: https://ub-madoc.bib.uni-mannheim.de/1653
URN: urn:nbn:de:bsz:180-madoc-16534
Document Type: Working paper
Year of publication: 2007
The title of a journal, publication series: ZEW Discussion Papers
Volume: 06-039
Place of publication: Mannheim
Edition: Version 2007
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: C14 J68 H43 ,
Subject headings (SWD): Deutschland <Westliche Länder> , Langzeitarbeitslosigkeit , Arbeitsmarktpolitik
Keywords (English): multiple treatments , training programs , employment effects , local linear matching , administrative data , active labor market programs
Abstract: Long-term public sector sponsored training programs often show little or negative short-run employment effects and often it is not possible to assess whether positive long-run effects exist. Based on unique administrative data, this paper estimates the long-run differential employment effects of three different types of training programs in West Germany. We use inflows into unemployment for the years 1986/87 and 1993/94 and apply local linear matching based on the estimated propensity score to estimate the effects of training programs starting during 1 to 2, 3 to 4, and 5 to 8 quarters of unemployment. The results show a negative lock-in effect for the period right after the beginning of the program and significantly positive treatment effects on employment rates in the medium- and long-run. The differential effects of the three programs compared to one another are mainly driven by differences in the length of the lock-in periods.
Additional information: Veränderte Version Oktober 2007

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