Estimating the Effect of a Retraining Program on the Re-Employment Rate of Displaced Workers

37 Pages Posted: 21 Jun 2009

See all articles by Sandra Cavaco

Sandra Cavaco

University of Angers - Institute of Economic Theory and Analysis (GATE); Aarhus School of Business; University of Lyon 2

Denis Fougère

National Center for Scientific Research (CNRS); CNRS and SCIENCES PO PARIS; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Julien Pouget

National Institute of Statistics and Economic Studies (INSEE); National Center for Scientific Research (CNRS); IZA Institute of Labor Economics

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Abstract

In this paper we estimate by matching techniques the effects of a French retraining program on the reemployment rate of displaced workers. This program, called "Conventions de conversion", was intended to improve reemployment prospects of displaced workers by proposing them retraining and job seeking assistance for a period of six months beginning just after the dismissal. Our empirical analysis is based upon non-experimental data collected by the French Ministry of Labour. Matching estimates show that this program succeeded in increasing the employment rate of trainees by approximately 6 points of percentage in the medium-term, namely in the second and third years after the date of entry into the program. This improvement is essentially due to an increase of their reemployment rate in regular jobs, namely jobs under long-term labour contracts.

Keywords: evaluation, retraining program, displaced workers, matching estimates

JEL Classification: C41, J24, J64, J68

Suggested Citation

Cavaco, Sandra and Fougere, Denis and Fougere, Denis and Pouget, Julien, Estimating the Effect of a Retraining Program on the Re-Employment Rate of Displaced Workers. IZA Discussion Paper No. 4227, Available at SSRN: https://ssrn.com/abstract=1423343 or http://dx.doi.org/10.2139/ssrn.1423343

Sandra Cavaco (Contact Author)

University of Angers - Institute of Economic Theory and Analysis (GATE) ( email )

93, chemin des Mouilles
Monnaie et Finance at Lyon
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France

Aarhus School of Business

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University of Lyon 2

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Denis Fougere

National Center for Scientific Research (CNRS)

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IZA Institute of Labor Economics

P.O. Box 7240
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Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Julien Pouget

National Institute of Statistics and Economic Studies (INSEE) ( email )

18, Boulevard Adolphe-Pinard
75675 Paris Cedex 14
France

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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