Employment and earnings effects of awarding training vouchers in Germany


Doerr, Annabelle ; Fitzenberger, Bernd ; Kruppe, Thomas ; Paul, Marie ; Strittmatter, Anthony


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URL: https://ub-madoc.bib.uni-mannheim.de/37105
URN: urn:nbn:de:bsz:180-madoc-371057
Document Type: Working paper
Year of publication: 2014
The title of a journal, publication series: ZEW Discussion Papers
Volume: 14-065
Place of publication: Mannheim
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: J68 , H43 , C21,
Keywords (English): Active labor market policies , training vouchers , treatment effects evaluation , administrative data
Abstract: In 2003, Germany moved from a system in which participants in training programs for the unemployed are assigned by caseworkers to an allocation system using vouchers. Based on the rich administrative data for all vouchers and on actual program participation, we provide inverse probability weighting and ordinary least squares estimates of the employment and earnings effects of a voucher award. Our results imply that after the award, voucher recipients experience long periods of lower labor market success. On average, there are only small positive employment effects and no gains in earnings even four years after the voucher award. However, we do find significantly positive effects both for low-skilled individuals and for degree courses. The strong positive selection effects implied by our estimates are consistent with sizeable cream-skimming effects.

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Doerr, Annabelle ; Fitzenberger, Bernd ; Kruppe, Thomas ; Paul, Marie ; Strittmatter, Anthony (2014) Employment and earnings effects of awarding training vouchers in Germany. Open Access ZEW Discussion Papers Mannheim 14-065 [Working paper]
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