End-of-year spending and the long-run employment effects of training programs for the unemployed


Fitzenberger, Bernd ; Furdas, Marina ; Sajons, Christoph


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URL: https://ub-madoc.bib.uni-mannheim.de/41765
URN: urn:nbn:de:bsz:180-madoc-417657
Document Type: Working paper
Year of publication: 2016
The title of a journal, publication series: ZEW Discussion Papers
Volume: 16-084
Place of publication: Mannheim
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
Subject: 330 Economics
Classification: JEL: J64 , J68 , H43,
Keywords (English): Germany , training for the unemployed , budgetary conditions , administrative data
Abstract: This study re-estimates the employment effects of training programs for the unemployed using exogenous variation in participation caused by budget rules in Germany in the 1980s and early 1990s, resulting in the infamous "end-of-year spending". In addition to estimating complier effects with 2SLS, we implement a exible control-function approach to obtain the average treatment effect on the treated (ATT). Our findings are: Participants who are only selected for budgetary reasons do not benefit from training programs. However, the ATT estimates suggest modest positive effects in the long run. Longer programs are more effective than shorter and more practice-oriented programs.

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Fitzenberger, Bernd ; Furdas, Marina ; Sajons, Christoph (2016) End-of-year spending and the long-run employment effects of training programs for the unemployed. Open Access ZEW Discussion Papers Mannheim 16-084 [Working paper]
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