The Impact of Government-Sponsored Training Programs on the Labour Market Transitions of Disadvantaged Males

The analysis focuses on an examination of the impact of government-sponsored training programs aimed at disadvantaged male youths on their labour market transitions. The richness of the data at our disposal allows us to recreate very detailed individual histories over a relatively long period (nine years). As many as seven distinct states on the labour are be identified in the data. We use a continuous time duration model to estimate the density of duration times in these seven states, controlling for the endogeneity of an individual's training status. We investigate the sensitivity of the parameter estimates by comparing a typical non-parametric specification with a series of parametric two-factor loading models, as well as a parametric three-factor loading model. Our results show that young, poorly educated males who participate in welfare training programs do far worse on the labour market than those who do not participate. Participation in the Job Re-Entry Program (JRP), a distinct welfare training programs, yields better results in terms of employment. Our estimates clearly indicate that participants in JRP and those in welfare training programs are distinct groups.