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Partial Identification of Wage Effects of Training Programs


Michael Lechner


University of St. Gallen - Swiss Institute for Empirical Economic Research

Blaise Melly


Brown University - Department of Economics

April 27, 2010

Brown University Economics Working Paper

Abstract:     
In an evaluation of a job-training program, the influence of the program on the individual wages is important, because it reflects the program effect on human capital. Estimating these effects is complicated because we observe wages only for employed individuals, and employment is itself an outcome of the program. Only usually implausible assumptions allow identifying these treatment effects. Therefore, we suggest weaker and more credible assumptions that bound various average and quantile effects. For these bounds, consistent, nonparametric estimators are proposed. In a reevaluation of a German training program, we find that a considerable improvement of the long-run potential wages of its participants.

Number of Pages in PDF File: 50

Keywords: Bounds, Treatment Effects, Causal Effects, Program Evaluation

JEL Classification: C21, C31, J30, J68

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Date posted: April 27, 2010  

Suggested Citation

Lechner, Michael and Melly, Blaise, Partial Identification of Wage Effects of Training Programs (April 27, 2010). Brown University Economics Working Paper. Available at SSRN: http://ssrn.com/abstract=1596715 or http://dx.doi.org/10.2139/ssrn.1596715

Contact Information

Michael Lechner (Contact Author)
University of St. Gallen - Swiss Institute for Empirical Economic Research ( email )
Varnbuelstrasse 14
St. Gallen, 9000
Switzerland
+41 71 224 2320 (Phone)
Blaise Melly
Brown University - Department of Economics ( email )
64 Waterman Street
Providence, RI 02912
United States
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