Endogenous Exit Bias in Training Programs for Unemployed Workers

11 Pages Posted: 26 May 2012

See all articles by Jochen Kluve

Jochen Kluve

Humboldt University of Berlin; RWI; IZA

Ulf Rinne

IZA Institute of Labor Economics

Arne Uhlendorff

IZA Institute of Labor Economics

Zhong Zhao

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

Abstract

This paper assesses the importance of reverse causality when evaluating the impact of training duration for unemployed workers. We use planned duration as an instrumental variable for actual duration. Our results suggest that the potential endogeneity of exits seems to be only relevant in the lower and upper part of the treatment duration distribution.

Keywords: treatment duration, local average treatment effect, dropouts

JEL Classification: C21, C26, J67

Suggested Citation

Kluve, Jochen and Rinne, Ulf and Uhlendorff, Arne and Zhao, Zhong, Endogenous Exit Bias in Training Programs for Unemployed Workers. IZA Discussion Paper No. 6565. Available at SSRN: https://ssrn.com/abstract=2066988

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

Ulf Rinne

IZA Institute of Labor Economics ( email )

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

HOME PAGE: http://www.iza.org/profile?key=1844

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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