Evaluating Continuous Training Programs Using the Generalized Propensity Score

47 Pages Posted: 23 May 2008

See all articles by Jochen Kluve

Jochen Kluve

Humboldt University of Berlin; RWI; IZA

Hilmar Schneider

IZA Institute of Labor Economics; DIW Berlin, German Institute for Economic Research

Arne Uhlendorff

IZA Institute of Labor Economics

Zhong Zhao

Institute for the Study of Labor (IZA); Renmin University of China

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Abstract

This paper assesses the dynamics of treatment effects arising from variation in the duration of training. We use German administrative data that have the extraordinary feature that the amount of treatment varies continuously from 10 days to 395 days (i.e. 13 months). This feature allows us to estimate a continuous dose-response function that relates each value of the dose, i.e. days of training, to the individual post-treatment employment probability (the response). The dose-response function is estimated after adjusting for covariate imbalance using the generalized propensity score, a recently developed method for covariate adjustment under continuous treatment regimes. Our data have the advantage that we can consider both the actual and planned training durations as treatment variables: If only actual durations are observed, treatment effect estimates may be biased because of endogenous exits. Our results indicate an increasing dose-response function for treatments of up to 100 days, which then flattens out. That is, longer training programs do not seem to add an additional treatment effect.

Keywords: training, program evaluation, continuous treatment, generalized propensity score

JEL Classification: C21, J68

Suggested Citation

Kluve, Jochen and Schneider, Hilmar and Uhlendorff, Arne and Zhao, Zhong, Evaluating Continuous Training Programs Using the Generalized Propensity Score. , Vol. , pp. -, . Available at SSRN: https://ssrn.com/abstract=1136417 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Jochen Kluve (Contact Author)

Humboldt University of Berlin ( email )

Spandauer Str. 1
Berlin, D-10099
Germany

RWI ( email )

Essen
Germany

IZA

P.O. Box 7240
Bonn, D-53072
Germany

Hilmar Schneider

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

DIW Berlin, German Institute for Economic Research

Mohrenstra├če 58
Berlin, 10117
Germany

Arne Uhlendorff

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Zhong Zhao

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing 100872
China

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