Are Training Programs More Effective When Unemployment is High?
University of St. Gallen Economics Discussion Paper No. 2006-23
46 Pages Posted: 10 Oct 2006
Date Written: October 2006
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
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