Quick job entry or long-term human capital development? The dynamic effects of alternative training schemes

This study evaluates and compares the effectiveness of two alternative training schemes for the unemployed: short, job-search oriented training and long, human capital oriented training. We investigate the impact dynamics of these programs considering both unemployment and employment duration. Our analysis uses a rich administrative longitudinal data set for Germany where both programs were implemented at the same time. Our estimation strategy flexibly accounts for dynamic selection on observables and unobservables as well as heterogeneous treatment effects. The results indicate that short-term training schemes can be an effective tool to reduce unemployment in the long run, in particular if participation occurs early during unemployment. Long-term training schemes increase the average duration of employment spells more strongly than short-term training. However, they increase the expected unemployment duration if they are started early during unemployment. This negative short-run impact of long-term training is an important driver of its overall effectiveness

Quick Job Entry or Long-Term Human Capital Development? The Dynamic Effects of Alternative Training Schemes

This article investigates how precisely short-term, job search-oriented training programs as opposed to long-term, human capital intensive training programs work. We evaluate and compare their effects on time until job entry, stability of employment, and earnings. Further, we examine the heterogeneity of treatment effects according to the timing of training during unemployment as well as across different subgroups of participants. We find that participating in short-term training reduces the remaining time in unemployment and moderately increases job stability. Long-term training programs initially prolong the remaining time in unemployment, but once the scheduled program end is reached participants exit to employment at a much faster rate than without training. In addition, they benefit from substantially more stable employment spells and higher earnings. Overall, long-term training programs are well effective in supporting the occupational advancement of very heterogeneous groups of participants, including those with generally weak labor market prospects. However, from a fiscal perspective only the low-cost short-term training schemes are cost efficient in the short ru

The dynamics of training programs for the unemployed

Time plays an important role in both the design and interpretation of evaluation studies of training programs. While the start and duration of a training program are closely linked to the evolution of job opportunities, the impact of training programs in the short and longer term changes over time. Neglecting these “dynamics” could lead to an unduly negative assessment of the effects of certain training schemes. Therefore, a better understanding of the dynamic relationship between different types of training and their respective labor market outcomes is essential for a better design and interpretation of evaluation studies

Imputation rules to improve the education variable in the IAB employment subsample

"The education variable in the IAB employment subsample has two shortcomings: missing values and inconsistencies with the reporting rule. We propose several deductive imputation procedures to improve the variable. They mainly use the multiple education information available in the data because the employees' education is reported at least once a year. We compare the improved data from the different procedures and the original data in typical applications in labor economics: educational composition of employment, wage inequality, and wage regression. We find, that correcting the education variable: (i) shows the educational attainment of the male labor force to be higher than measured with the, original data, (ii) gives different values for some measures of wage inequality, and (iii) does not change the estimates in wage regressions much." (Author's abstract, IAB-Doku) ((en))IAB-Beschäftigtenstichprobe, Bildungsabschluss, Bildungsverlauf, Datengewinnung, Validität, Stichprobenfehler, Datenaufbereitung, Arbeitsmarktforschung, Reliabilität, Datenqualität, Imputationsverfahren

Imputation Rules to Improve the Education Variable in the IAB Employment Subsample

The education variable in the IAB employment subsample has two shortcomings : missing values and inconsistencies with the reporting rule. We propose several deductive imputation procedures to improve the variable. They mainly use the multiple education information available in the data because the employees' education is reported at least once a year. We compare the improved data from the different procedures and the original data in typical applications in labor economics: educational composition of employment, wage inequality, and wage regression. We find, that correcting the education variable: (i) shows the educational attainment of the male labor force to be higher than measured with the original data, (ii) gives different values for some measures of wage inequality, and (iii) does not change the estimates in wage regressions much. --

Get Training or Wait? Long-Run Employment Effects of Training Programs for the Unemployed in West Germany

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. --multiple treatments,training programs,employment effects,local linear matching,administrative data,active labor market programs

Get Training or Wait? Long-Run Employment Effects of Training Programs for the Unemployed in West Germany

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. --multiple treatments,training programs,employment effects,local linear matching,administrative data,active labor market programs

Eine Analyse der Teilnehmerselektion in die berufliche Weiterbildung auf Basis der Integrierten Erwerbsbiografien (IEB)

EINE ANALYSE DER TEILNEHMERSELEKTION IN DIE BERUFLICHE WEITERBILDUNG AUF BASIS DER INTEGRIERTEN ERWERBSBIOGRAFIEN (IEB) Eine Analyse der Teilnehmerselektion in die berufliche Weiterbildung auf Basis der Integrierten Erwerbsbiografien (IEB) / Osikominu, Aderonke (Rights reserved) ( -

Quick job entry or long-term human capital development? the dynamic effects of alternative training schemes

This paper investigates how precisely short-term, job-search oriented training programs as opposed to long-term, human capital intensive training programs work. We evaluate and compare their effects on time until job entry, stability of employment, and earnings. Further, we examine the heterogeneity of treatment effects according to the timing of training during unemployment as well as across different subgroups of participants. We find that participating in short-term training reduces the remaining time in unemployment and moderately increases job stability. Long-term training programs initially prolong the remaining time in unemployment, but once the scheduled program end is reached participants exit to employment at a much faster rate than without training. In addition, they benefit from substantially more stable employment spells and higher earnings. Overall, long-term training programs are well effective in supporting the occupational advancement of very heterogeneous groups of participants, including those with generally weak labor market prospects. However, from a fiscal perspective only the low-cost short-term training schemes are cost efficient in the short run

Eine Analyse der Teilnehmerselektion in die berufliche Weiterbildung auf Basis der Integrierten Erwerbsbiografien (IEB)

"In der Studie wird die Teilnehmerselektion in Maßnahmen der Förderung der beruflichen Weiterbildung im Lichte der mit qualifizierenden Maßnahmen verfolgten Zielsetzungen analysiert. Dazu werden ausgehend von den Formulierungen des Gesetzes und mit Hilfe von theoretischen ökonomischen Überlegungen Hypothesen zur Teilnehmerstruktur gebildet. Anschließend werden diese mit den empirischen Befunden auf Basis einer Stichprobe der Integrierten Erwerbsbiografien (IEB) kontrastiert. So können wertvolle Einsichten in den Teilnehmerselektionsprozess gewonnen werden. Neben der bivariaten Analyse der Partizipation an verschiedenen Maßnahmetypen der aktiven Arbeitsmarktpolitik kommen in dem empirischen Teil dieser Arbeit auch multivariate Methoden, mit denen das Zusammenwirken mehrerer Einflussfaktoren und die Beziehungen zwischen den verschiedenen Alternativen untersucht werden können, zur Anwendung." (Autorenreferat