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Long-Run Effects of Public Sector Sponsored Training in West Germany

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abstract Between 1991 and 1997 West Germany spent on average about 3.6 bn Euro per year on public sector sponsored training programmes for the unemployed. We base our empirical analysis on a new admin­istrative data base that plausibly allows for selectivity correction by microeconometric matching methods. We identify the effects of different types of training programmes over a horizon of more than seven years. Using bias corrected weighted multiple neighbours matching we find that all pro­grammes have negative effects in the short run and positive effects over a horizon of about four years. However, for substantive training programmes with duration of about two years gains in employment probabilities of more than 10% points appear to be sustainable, but come at the price of large negative lock-in effects.
   
type journal paper
   
keywords active labour market policy
   
language English
kind of paper journal article
date of appearance 1-8-2011
journal Journal of the European Economic Association
publisher Wiley (New York)
ISSN 1542-4766
ISSN (online) 1542-4774
DOI 10.1111/j.1542-4774.2011.01029.x
volume of journal 9
number of issue 4
page(s) 742-784
review blind review
   
citation Lechner, M., Wunsch, C., & Miquel, R. (2011). Long-Run Effects of Public Sector Sponsored Training in West Germany. Journal of the European Economic Association, 9(4), 742-784, DOI:10.1111/j.1542-4774.2011.01029.x.