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The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany after Unification

abstract We analyse the effects of government-sponsored training for the unemployed conducted during East German transition. For the microeconometric analysis, we use a new, large and informative administrative database that allows us to use matching methods to address potential selection bias, to study different types of programmes, and to observe labour market outcomes over 8 years. We find strong evidence that, on average, the training programmes under investigation increase long-term employ­ment pros­pects and earnings. However, as an important exception, the longer training pro­grammes are not helpful for their male participants. At least part of the explanation for this negative result is that caseworkers severely misjudged the structure of the future demand for skills. (doi:10.1111/j.1468-0475.2007.00415.x)
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type journal paper
   
keywords active labour market policies, causal effects, conditional independence assumption, evaluation, Germany, matching
   
language English
kind of paper journal article
date of appearance 17-10-2007
journal German Economic Review
publisher Wiley-Blackwell
ISSN 1465-6485
volume of journal 8
number of issue 4
page(s) 468-507
review double-blind review
   
citation Lechner, M., Miquel, R., & Wunsch, C. (2007). The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany after Unification. German Economic Review, 8(4), 468-507.