Are Training Programs More Effective When Unemployment is High?

University of St. Gallen Economics Discussion Paper No. 2006-23

IZA Discussion Paper No. 2355

46 Pages Posted: 10 Oct 2006

See all articles by Michael Lechner

Michael Lechner

University of St. Gallen - Swiss Institute for Empirical Economic Research

Conny Wunsch

University of Basel; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute); University of St. Gallen

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Date Written: October 2006

Abstract

We estimate short, medium, and long-run individual labor market effects of training programs for unemployed by following program participation on a monthly basis over a ten-year period. Since analyzing the effectiveness of training over such a long period is impossible with experimental data, we use an administrative database compiled for evaluating German training programs. Based on matching estimation adapted to the various issues that arise in this particular context, we find a clear positive relation between the effectiveness of the programs and the unemployment rate over time.

Keywords: Active labor market policy, long-run effects, matching estimation, causal effects, program

JEL Classification: J68

Suggested Citation

Lechner, Michael and Wunsch, Conny, Are Training Programs More Effective When Unemployment is High? (October 2006). University of St. Gallen Economics Discussion Paper No. 2006-23, IZA Discussion Paper No. 2355, Available at SSRN: https://ssrn.com/abstract=936036

Michael Lechner (Contact Author)

University of St. Gallen - Swiss Institute for Empirical Economic Research ( email )

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Conny Wunsch

University of Basel ( email )

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Basel, CH-4003
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IZA Institute of Labor Economics ( email )

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CESifo (Center for Economic Studies and Ifo Institute) ( email )

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University of St. Gallen ( email )

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St. Gallen, 9000
Switzerland

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