IDEAS home Printed from https://ideas.repec.org/p/iab/iabdpa/201707.html
   My bibliography  Save this paper

Regional discontinuities and the effectiveness of further training subsidies for low-skilled employees

Author

Listed:
  • Dauth, Christine

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"I analyze the effects of further training subsidies for low-skilled employees on individual labor market outcomes in Germany for the period from 2007 to 2012. Using detailed administrative data, I exploit cross-regional variation in the conditional policy styles of local employment agencies and use this fuzzy discontinuity as an instrument for program participation. I find that subsidies significantly increase cumulative employment duration and earnings for the subgroup of compliers. These gains are particularly pronounced for workers who are women, younger than 35 years old, non-German citizens and participated before the economic crisis of 2009." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Dauth, Christine, 2017. "Regional discontinuities and the effectiveness of further training subsidies for low-skilled employees," IAB-Discussion Paper 201707, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:201707
    as

    Download full text from publisher

    File URL: https://doku.iab.de/discussionpapers/2017/dp0717.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Carla Haelermans & Lex Borghans, 2012. "Wage Effects of On-the-Job Training: A Meta-Analysis," British Journal of Industrial Relations, London School of Economics, vol. 50(3), pages 502-528, September.
    2. Laura Abramovsky & Erich Battistin & Emla Fitzsimons & Alissa Goodman & Helen Simpson, 2011. "Providing Employers with Incentives to Train Low-SkilledWorkers: Evidence from the UK Employer Training Pilots," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 153-193, January.
    3. Didier Fouarge & Trudie Schils & Andries de Grip, 2013. "Why do low-educated workers invest less in further training?," Applied Economics, Taylor & Francis Journals, vol. 45(18), pages 2587-2601, June.
    4. Andries De Grip & Jan Sauermann, 2012. "The Effects of Training on Own and Co‐worker Productivity: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, vol. 122(560), pages 376-399, May.
    5. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    6. Frölich, Markus & Lechner, Michael, 2010. "Exploiting Regional Treatment Intensity for the Evaluation of Labor Market Policies," Journal of the American Statistical Association, American Statistical Association, vol. 105(491), pages 1014-1029.
    7. Caliendo, Marco & Mahlstedt, Robert & Mitnik, Oscar A., 2017. "Unobservable, but unimportant? The relevance of usually unobserved variables for the evaluation of labor market policies," Labour Economics, Elsevier, vol. 46(C), pages 14-25.
    8. Görlitz, Katja & Tamm, Marcus, 2017. "Information, financial aid and training participation: Evidence from a randomized field experiment," Labour Economics, Elsevier, vol. 47(C), pages 138-148.
    9. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
    10. Grund, Christian & Martin, Johannes, 2010. "Determinants of Further Training: Evidence for Germany," IZA Discussion Papers 5315, Institute of Labor Economics (IZA).
    11. Christine Dauth & Ott Toomet, 2016. "On Government-Subsidized Training Programs for Older Workers," LABOUR, CEIS, vol. 30(4), pages 371-392, December.
    12. Schwerdt, Guido & Messer, Dolores & Woessmann, Ludger & Wolter, Stefan C., 2012. "The impact of an adult education voucher program: Evidence from a randomized field experiment," Journal of Public Economics, Elsevier, vol. 96(7-8), pages 569-583.
    13. Maarten Goos & Alan Manning, 2007. "Lousy and Lovely Jobs: The Rising Polarization of Work in Britain," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 118-133, February.
    14. repec:ecj:econjl:v:122:y:2012:i::p:376-399 is not listed on IDEAS
    15. Brunello, Giorgio & Garibaldi, Pietro & Wasmer, Etienne (ed.), 2007. "Education and Training in Europe," OUP Catalogue, Oxford University Press, number 9780199210978.
    16. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages 112-142, February.
    17. Fredriksson, Peter & Johansson, Per, 2008. "Dynamic Treatment Assignment," Journal of Business & Economic Statistics, American Statistical Association, vol. 26, pages 435-445.
    18. Barbara Sianesi, 2004. "An Evaluation of the Swedish System of Active Labor Market Programs in the 1990s," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 133-155, February.
    19. David Card & Jochen Kluve & Andrea Weber, 2018. "What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 894-931.
    20. Matthias Dorner & Jörg Heining & Peter Jacobebbinghaus & Stefan Seth, 2010. "The Sample of Integrated Labour Market Biographies," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 130(4), pages 599-608.
    21. Annabelle Doerr & Bernd Fitzenberger & Thomas Kruppe & Marie Paul & Anthony Strittmatter, 2017. "Employment and Earnings Effects of Awarding Training Vouchers in Germany," ILR Review, Cornell University, ILR School, vol. 70(3), pages 767-812, May.
    22. Alison L. Booth & Mark L. Bryan, 2005. "Testing Some Predictions of Human Capital Theory: New Training Evidence from Britain," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 391-394, May.
    23. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute of Labor Economics (IZA).
    24. Görlitz, Katja & Tamm, Marcus, 2016. "The returns to voucher-financed training on wages, employment and job tasks," Economics of Education Review, Elsevier, vol. 52(C), pages 51-62.
    25. repec:taf:applec:45:y:2013:i:18:p:2587-2601 is not listed on IDEAS
    26. Markussen, Simen & Røed, Knut, 2014. "The impacts of vocational rehabilitation," Labour Economics, Elsevier, vol. 31(C), pages 1-13.
    27. Dorner, Matthias & Heining, Jörg & Jacobebbinghaus, Peter & Seth, Stefan, 2010. "Sample of Integrated Labour Market Biographies (SIAB) 1975-2008," FDZ Methodenreport 201009_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    28. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.
    29. repec:eme:rlepps:v:18:y:1999:i:1999:p:303-330 is not listed on IDEAS
    30. Bernhard Boockmann & Stephan L. Thomsen & Thomas Walter, 2014. "Intensifying the use of benefit sanctions: an effective tool to increase employment?," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-19, December.
    31. Stenberg, Anders, 2011. "Using longitudinal data to evaluate publicly provided formal education for low skilled," Economics of Education Review, Elsevier, vol. 30(6), pages 1262-1280.
    32. Dauth, Christine & Lang, Julia, 2017. "Should the unemployed care for the elderly? : The effect of subsidized occupational and further training in elderly care," IAB-Discussion Paper 201713, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    33. David Dean & John Pepper & Robert Schmidt & Steven Stern, 2015. "The Effects Of Vocational Rehabilitation For People With Cognitive Impairments," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56, pages 399-426, May.
    34. Cecilia ALBERT & Carlos GARCÍA-SERRANO & Virginia HERNANZ, 2010. "On-the-job training in Europe: Determinants and wage returns," International Labour Review, International Labour Organization, vol. 149(3), pages 315-341, September.
    35. Garibaldi, Pietro, 2006. "Personnel Economics in Imperfect Labour Markets," OUP Catalogue, Oxford University Press, number 9780199280674.
    36. Edwin Leuven, 2005. "The Economics of Private Sector Training: A Survey of the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 19(1), pages 91-111, February.
    37. Dorner, Matthias & Heining, Jörg & Jacobebbinghaus, Peter & Seth, Stefan, 2010. "Sample of Integrated Labour Market Biographies (SIAB) 1975-2008," FDZ Datenreport. Documentation on Labour Market Data 201001_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    38. Hidalgo, Diana & Oosterbeek, Hessel & Webbink, Dinand, 2014. "The impact of training vouchers on low-skilled workers," Labour Economics, Elsevier, vol. 31(C), pages 117-128.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gerard J. van den Berg & Christine Dauth & Pia Homrighausen & Gesine Stephan, 2023. "Informing employees in small and medium‐sized firms about training: Results of a randomized field experiment," Economic Inquiry, Western Economic Association International, vol. 61(1), pages 162-178, January.
    2. Konle-Seidl, Regina, 2017. "Retention and re-integration of older workers into the labour market: What works?," IAB-Discussion Paper 201717, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Lang, Julia, 2018. "Employment effects of language training for unemployed immigrants," IAB-Discussion Paper 201821, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Dauth, Christine & Lang, Julia, 2017. "Should the unemployed care for the elderly? : The effect of subsidized occupational and further training in elderly care," IAB-Discussion Paper 201713, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Kruppe, Thomas & Trepesch, Merlind, 2017. "Weiterbildungsbeteiligung in Deutschland : Auswertungen mit den Daten der Erwachsenenbefragung des Nationalen Bildungspanels "Bildung im Erwachsenenalter und lebenslanges Lernen"," IAB-Discussion Paper 201716, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Promberger, Markus, 2017. "Resilience among vulnerable households in Europe : Questions, concept, findings and implications," IAB-Discussion Paper 201712, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dauth, Christine, 2016. "Do low-skilled employed workers benefit from further training subsidies?," VfS Annual Conference 2016 (Augsburg): Demographic Change 145533, Verein für Socialpolitik / German Economic Association.
    2. Christine Dauth & Ott Toomet, 2016. "On Government-Subsidized Training Programs for Older Workers," LABOUR, CEIS, vol. 30(4), pages 371-392, December.
    3. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    4. Ruhose, Jens & Thomsen, Stephan L. & Weilage, Insa, 2019. "The benefits of adult learning: Work-related training, social capital, and earnings," Economics of Education Review, Elsevier, vol. 72(C), pages 166-186.
    5. Balmaceda, Felipe, 2021. "A failure of the market for college education and on-the-job human capital," Economics of Education Review, Elsevier, vol. 84(C).
    6. Gerard J. van den Berg & Christine Dauth & Pia Homrighausen & Gesine Stephan, 2023. "Informing employees in small and medium‐sized firms about training: Results of a randomized field experiment," Economic Inquiry, Western Economic Association International, vol. 61(1), pages 162-178, January.
    7. Jens Ruhose & Stephan L. Thomsen & Insa Weilage, 2018. "The Wider Benefits of Adult Learning: Work-Related Training and Social Capital," CESifo Working Paper Series 7268, CESifo.
    8. Christine Dauth & Julia Lang, 2019. "Can the unemployed be trained to care for the elderly? The effects of subsidized training in elderly care," Health Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 543-555, April.
    9. Jens Ruhose & Stephan L. Thomsen & Insa Weilage, 2018. "The Wider Benefits of Adult Learning: Work-Related Training and Social Capital," SOEPpapers on Multidisciplinary Panel Data Research 1004, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Dauth, Christine & Lang, Julia, 2017. "Should the unemployed care for the elderly? : The effect of subsidized occupational and further training in elderly care," IAB-Discussion Paper 201713, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Lang, Julia & Dauth, Christine, 2017. "Should the unemployed care for the elderly? The effect of subsidized occupational and further training in geriatric care," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168130, Verein für Socialpolitik / German Economic Association.
    12. Ruhose, Jens & Thomsen, Stephan, 2017. "Non-Monetary Benefits of Continuous Training," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168169, Verein für Socialpolitik / German Economic Association.
    13. Julia Lang, 2022. "Employment effects of language training for unemployed immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 719-754, April.
    14. Lang, Julia, 2018. "Employment effects of language training for unemployed immigrants," IAB-Discussion Paper 201821, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. Singer, Christine & Toomet, Ott-Siim, 2013. "On government-subsidized training programs for older workers," IAB-Discussion Paper 201321, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    16. Kauhanen, Antti, 2018. "The Effects of an Education-Leave Program on Educational Attainment and Labor-Market Outcomes," ETLA Working Papers 56, The Research Institute of the Finnish Economy.
    17. Albinowski, Maciej & Lewandowski, Piotr, 2024. "The impact of ICT and robots on labour market outcomes of demographic groups in Europe," Labour Economics, Elsevier, vol. 87(C).
    18. Martins, Pedro S., 2021. "Employee training and firm performance: Evidence from ESF grant applications," Labour Economics, Elsevier, vol. 72(C).
    19. Hagen, Tobias, 2016. "Econometric evaluation of a placement coaching program for recipients of disability insurance benefits in Switzerland," Working Paper Series 10, Frankfurt University of Applied Sciences, Faculty of Business and Law.
    20. Fitzenberger, Bernd & Furdas, Marina & Sajons, Christoph, 2016. "End-of-year spending and the long-run employment effects of training programs for the unemployed," Freiburg Discussion Papers on Constitutional Economics 16/08, Walter Eucken Institut e.V..

    More about this item

    Keywords

    Bundesrepublik Deutschland ; Einkommenseffekte ; Niedrigqualifizierte ; regionale Disparität ; Teilnehmer ; Arbeitsmarktchancen ; Weiterbildung ; Weiterbildungsförderung ; 2007-2012;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iab:iabdpa:201707. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: IAB, Geschäftsbereich Wissenschaftliche Fachinformation und Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/iabbbde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.