Long-run effects of public sector sponsored training in west germany
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In this paper, the effects of different types of training programmes over a horizon of more than seven years were identified using bias corrected weighted multiple neighbors matching, and they found that all programmes have negative effects in the short run and positive effects over a four years.Abstract:
Between 1991 and 1997 West Germany spent on average about 3.6 bn Euro per year on public sector sponsored training programmes for the unemployed. We base our empirical analysis on a new administrative data base that plausibly allows for selectivity correction by microeconometric matching methods. We identify the effects of different types of training programmes over a horizon of more than seven years. Using bias corrected weighted multiple neighbours matching we find that all programmes have negative effects in the short run and positive effects over a horizon of about four years. However, for substantive training programmes with duration of about two years gains in employment probabilities of more than 10% points appear to be sustainable, but come at the price of large negative lock-in effects.read more
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References
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The Economics and Econometrics of Active Labor Market Programs
TL;DR: In this paper, the authors examine the impacts of active labor market policies, such as job training, job search assistance, and job subsidies, and the methods used to evaluate their effectiveness.