Quick Job Entry or Long-Term Human Capital Devlopment? The Dynamic Effects of Alternative Training Schemes

45 Pages Posted: 14 Jun 2012  

Aderonke Osikominu

University of Hohenheim

Date Written: May 31, 2012

Abstract

This paper investigates how precisely short-term, job-search oriented training programs as opposed to long-term, human capital intensive training programs work. We evaluate and compare their effects on time until job entry, stability of employment, and earnings. Further, we examine the heterogeneity of treatment effects according to the timing of training during unemployment as well as across different subgroups of participants. We find that participating in short-term training reduces the remaining time in unemployment and moderately increases job stability. Long-term training programs initially prolong the remaining time in unemployment, but once the scheduled program end is reached participants exit to employment at a much faster rate than without training. In addition, they benefit from substantially more stable employment spells and higher earnings. Overall, long-term training programs are well effective in supporting the occupational advancement of very heterogeneous groups of participants, including those with generally weak labor market prospects. However, from a fiscal perspective only the low-cost short-term training schemes are cost efficient in the short run.

Keywords: training, program evaluation, duration analysis, dynamic treatment effects, multiple treatments, active labor market policy

JEL Classification: J640, C410, J680, I280

Suggested Citation

Osikominu, Aderonke, Quick Job Entry or Long-Term Human Capital Devlopment? The Dynamic Effects of Alternative Training Schemes (May 31, 2012). CESifo Working Paper Series No. 3828. Available at SSRN: https://ssrn.com/abstract=2084064

Aderonke Osikominu (Contact Author)

University of Hohenheim ( email )

Stuttgart
Germany

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