Training the Unemployed in France: How Does it Affect Unemployment Duration and Recurrence?

42 Pages Posted: 3 Nov 2008  

Bruno Crepon

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE); IZA Institute of Labor Economics

Marc Ferracci

Université Paris-Est Marne la Vallée (UPEMLV); CREST-INSEE

Denis Fougère

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE); National Center for Scientific Research (CNRS); IZA Institute of Labor Economics

Abstract

Econometric evaluations of public-sponsored training programmes generally find little evidence of an impact of such policies on transition rates out of unemployment. We perform the first evaluation of training effects for the unemployed adults in France, exploiting a unique longitudinal dataset from the unemployment insurance system. Using the so-called timing-of-events methodology to control for both observed and unobserved heterogeneity, we find that training does not accelerate the exit from unemployment, but has a significant and positive effect on the duration of the subsequent employment spell. Accounting for training duration, we find that longer training spells cause longer unemployment spells, but also longer employment spells, suggesting that training improves the matching process between jobseekers and firms.

Keywords: training programmes, unemployment duration, multiple spells, unobserved heterogeneity

JEL Classification: J24, J41, J58

Suggested Citation

Crepon, Bruno and Ferracci, Marc and Fougère, Denis, Training the Unemployed in France: How Does it Affect Unemployment Duration and Recurrence?. IZA Discussion Paper No. 3215. Available at SSRN: https://ssrn.com/abstract=1294406 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Bruno Crepon (Contact Author)

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE) ( email )

92245 Malakoff Cedex
France

IZA Institute of Labor Economics

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

Marc Ferracci

Université Paris-Est Marne la Vallée (UPEMLV) ( email )

France

CREST-INSEE

18, Boulevard Adolphe-Pinard
92244 Malakoff Cedex
France

Denis Fougere

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE) ( email )

15, Boulevard Adolphie PINARD
92245 Malakoff Cedex
France
+33 1 4117 7713 (Phone)
+33 1 4117 7634 (Fax)

National Center for Scientific Research (CNRS)

3, rue Michel-Ange
Paris cedex 16, 75794
France

IZA Institute of Labor Economics

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

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