Long-Run Effects of Public Sector Sponsored Training in West Germany

By M. Lechner, Ruth Miquel, Conny Wunsch. Social Science Research Network, 2011

480 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Statistics and Probability

View Paper: https://www.semanticscholar.org/paper/e16b7b4e3c90aec6f9b36096e6c3efa03088bc48

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Citations in the corpus

The Finite Sample Performance of Inference Methods for Propensity Score Matching and Weighting Estimators (2018, unknown): “In the simulations, we consider the radius matching algorithm of Lechner, Miquel, and Wunsch (2011), which performed well in Huber, Lechner, andWunsch (2013).”
Get Training or Wait? Long-Run Employment Effects of Training Programs for the Unemployed in West Germany (2006, unknown): “In contrast, Lechner et al. (2005a) report quite favorable evidence for RT.”
Active Labor Market Policies (2016, background): “Lechner et al. (2011) analyzed the impact of training programs in Germany.”
Start-Up Subsidies for the Unemployed: Long-Term Evidence and Effect Heterogeneity (2011, background): “Furthermore, employment subsidies, job creation schemes and job-search assistance have also been adapted by almost all OECD countries.”
Efficiency and equity of European education and training policies (2006, unknown): “…and employability of participants have been found, at least in the short run, although more recent evidence suggests that effects in the longer run may be not as bleak, albeit probably far from being cost effective (cf. Lechner et al. 2004 and the references therein for evidence from West Germany).”
Evaluating continuous training programmes by using the generalized propensity score (2012, background): “There exists evidence that substantive training programs with a duration of two years and leading to a vocational degree have a large positive impact on subsequent employment outcomes (Lechner et al. 2010).”
Unobservable, but unimportant? The relevance of usually unobserved variables for the evaluation of labor market policies☆ (2017, methodology): “Previous studies find positive effects only in the very long-run (e.g. Fitzenberger et al., 2008; Lechner et al., 2011) or even partly negative effects on employment (e.g. Lechner and Wunsch, 2008).”
Costs and benefits of Danish active labour market programmes (2008, methodology): “This is done in Lechner et al. (2005), and their strategy is followed in an evaluation of Danish classroom training programmes in Jacobsen et al. (2006).”