Get training or wait?

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." (Author's abstract, IAB-Doku) ((en))

Cite article

Fitzenberger, B., Osikominu, A. & Völter, R. (2006): Get training or wait? Long-run employment effects of training programs for the unemployed in West Germany. (IZA discussion paper 2121), Bonn, 57 p.