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What effect do vocational training vouchers have on the unemployed?

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  • Anthony Strittmatter

    (University of St. Gallen, Switzerland)

Abstract

The objective of providing vocational training for the unemployed is to increase their chances of re-employment and human capital accumulation. In comparison to mandatory course assignment by case workers, the awarding of vouchers increases recipients’ freedom to choose between different courses and makes non-redemption a possibility. In addition, vouchers may introduce market mechanisms between training providers. However, empirical evidence suggests that voucher allocation mechanisms prolong the unemployment duration of training participants. But, after an initial period of deterioration, better long-term employment opportunities are possible.

Suggested Citation

  • Anthony Strittmatter, 2016. "What effect do vocational training vouchers have on the unemployed?," IZA World of Labor, Institute of Labor Economics (IZA), pages 316-316, November.
    • Handle: RePEc:iza:izawol:journl:y:2016:n:316
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    References listed on IDEAS

    as
    1. Barnow, Burt S., 2009. "Vouchers in U.S. vocational training programs : an overview of what we have learned," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 42(1), pages 71-84.
    2. Martin Huber & Michael Lechner & Anthony Strittmatter, 2018. "Direct and indirect effects of training vouchers for the unemployed," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 181(2), pages 441-463, February.
    3. Carolyn Heinrich & Peter Mueser & Kenneth Troske & Kyung-Seong Jeon & Daver Kahvecioglu, 2013. "Do Public Employment and Training Programs Work?," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    4. Ulf Rinne & Marc Schneider & Arne Uhlendorff, 2011. "Do the skilled and prime-aged unemployed benefit more from training? Effect heterogeneity of public training programmes in Germany," Applied Economics, Taylor & Francis Journals, vol. 43(25), pages 3465-3494.
    5. Doerr, Annabelle & Strittmatter, Anthony, 2014. "Assignment Mechanisms, Selection Criteria, and the Effectiveness of Training Programs," Economics Working Paper Series 1421, University of St. Gallen, School of Economics and Political Science, revised May 2017.
    6. Stefano DellaVigna & M. Daniele Paserman, 2005. "Job Search and Impatience," Journal of Labor Economics, University of Chicago Press, vol. 23(3), pages 527-588, July.
    7. repec:mpr:mprres:7217 is not listed on IDEAS
    8. Barnow, Burt S., 2009. "Vouchers in U.S. vocational training programs : an overview of what we have learned," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 42(1), pages 71-84.
    9. Ulf Rinne & Arne Uhlendorff & Zhong Zhao, 2013. "Vouchers and caseworkers in training programs for the unemployed," Empirical Economics, Springer, vol. 45(3), pages 1089-1127, December.
    10. Irma Perez-Johnson & Quinn Moore & Robert Santillano, "undated". "Improving the Effectiveness of Individual Training Accounts: Long-Term Findings from an Experimental Evaluation of Three Service Delivery Models," Mathematica Policy Research Reports ddb772ea2aa242a1a74579eb0, Mathematica Policy Research.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Massimiliano Bratti & Corinna Ghirelli & Enkelejda Havari & Giulia Santangelo, 2022. "Vocational training for unemployed youth in Latvia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 677-717, April.
    2. Doerr Annabelle & Strittmatter Anthony, 2021. "Identifying Causal Channels of Policy Reforms with Multiple Treatments and Different Types of Selection," Journal of Econometric Methods, De Gruyter, vol. 10(1), pages 67-88, January.
    3. Miroslav Stefanik, 2021. "Shifting the Training Choice Decision to the Jobseeker—The Slovak Experience," LABOUR, CEIS, vol. 35(2), pages 192-213, June.
    4. Bratti, Massimiliano & Ghirelli, Corinna & Havari, Enkelejda & Santangelo, Giulia, 2018. "Vocational Training for Unemployed Youth in Latvia: Evidence from a Regression Discontinuity Design," IZA Discussion Papers 11870, Institute of Labor Economics (IZA).
    5. Birca Alic, 2024. "Increasing Sustainable Employment By Involving Organisations In The Vocational Training Of The Unemployed," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 34-44, August.

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    More about this item

    Keywords

    voucher; assignment mechanism; consumer sovereignty; vocational training; unemployment;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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