Evaluating the Dynamic Employment Effects of Training Programs in East Germany Using Conditional Difference-in-Differences

87 Pages Posted: 6 Dec 2005

See all articles by Annette Bergemann

Annette Bergemann

University of Bristol - Department of Economics; IZA Institute of Labor Economics; IFAU - Institute for Labour Market Policy Evaluation

Bernd Fitzenberger

Humboldt University of Berlin - School of Business and Economics

Stefan Speckesser

Policy Studies Institute (PSI)

Date Written: November 2005

Abstract

This paper evaluates the effects of Public Sponsored Training in East Germany in the context of reiterated treatments. Selection bias based on observed characteristics is corrected for by applying kernel matching based on the propensity score. We control for further selection and the presence of Ashenfelter's Dip before the program with conditional difference-in-differences estimators. Training as a first treatment shows insignificant effects on the transition rates. The effect of program sequences and the incremental effect of a second program on the reemployment probability are insignificant. However, the incremental effect on the probability to remain employed is slightly positive.

Keywords: Evaluation of active labor market policy in East Germany, nonparametric matching, conditional difference-in-differences, employment dynamics, Ashenfelter's Dip, bootstrap

JEL Classification: C14, C23, H43, J64, J68

Suggested Citation

Bergemann, Annette and Fitzenberger, Bernd and Speckesser, Stefan, Evaluating the Dynamic Employment Effects of Training Programs in East Germany Using Conditional Difference-in-Differences (November 2005). IZA Discussion Paper No. 1848, ZEW Discussion Paper No. 04-41, Available at SSRN: https://ssrn.com/abstract=555948

Annette Bergemann

University of Bristol - Department of Economics ( email )

8 Woodland Road
Bristol BS8 ITN
United Kingdom

IZA Institute of Labor Economics

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

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden

Bernd Fitzenberger (Contact Author)

Humboldt University of Berlin - School of Business and Economics ( email )

Spandauer Str. 1
Berlin, D-10099
Germany

Stefan Speckesser

Policy Studies Institute (PSI) ( email )

London NW1 3SR
United Kingdom

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