The Effect of Vocational Employment Training on the Individual Transition Rate from Unemployment to Work

IFAU - Institute for Labour Market Policy Evaluation, Working Paper No. 2002:8

50 Pages Posted: 26 Sep 2002

See all articles by Katarina Richardson

Katarina Richardson

IFAU - Office of Labour Market Policy Evaluation

Gerard J. van den Berg

VU University Amsterdam - Department of Economics; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; Tinbergen Institute

Date Written: April 15, 2002

Abstract

Amongst the active labor market policy programs for the unemployed in Sweden, the vocational employment training program is the most ambitious and expensive. We analyze its effect on the individual transition rate from unemployment to employment using a unique set of administrative data and a novel empirical approach that exploits variation in the timing of training and exit to work. The approach involves the estimation of duration models, and it allows us to quantify the individual effect of training in the presence of selectivity on unobservables. The data contain the full population of unemployed in the period 1993-2000 and include multiple unemployment spells for many individuals. The results indicate a significantly positive effect on exit to work after exiting the program. Its magnitude is very large shortly after leaving the course but diminishes afterwards. If we also take account of the time spent in the program then the net effect of participation in the program on the mean unemployment duration is close to zero.

Keywords: Vocational training, program evaluation, duration analysis, Swedish labor market, selectivity bias, treatment effect

JEL Classification: J64, J24, I28, J68

Suggested Citation

Richardson, Katarina and van den Berg, Gerard J., The Effect of Vocational Employment Training on the Individual Transition Rate from Unemployment to Work (April 15, 2002). IFAU - Institute for Labour Market Policy Evaluation, Working Paper No. 2002:8. Available at SSRN: https://ssrn.com/abstract=319060 or http://dx.doi.org/10.2139/ssrn.319060

Katarina Richardson (Contact Author)

IFAU - Office of Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden
+46 18 471 70 74 (Phone)

Gerard J. Van den Berg

VU University Amsterdam - Department of Economics ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands
+31 20 444 6132 (Phone)
+32 20 444 6020 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

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

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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