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Are Training Programs More Effective When Unemployment Is High?

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  • Lechner, Michael

    (University of St. Gallen)

  • Wunsch, Conny

    (University of Basel)

Abstract

We estimate short, medium, and long-run individual labor market effects of training programs for unemployed by following program participation on a monthly basis over a ten-year period. Since analyzing the effectiveness of training over such a long period is impossible with experimental data, we use an administrative database compiled for evaluating German training programs. Based on matching estimation adapted to the various issues that arise in this particular context, we find a clear positive relation between the effectiveness of the programs and the unemployment rate over time.

Suggested Citation

  • Lechner, Michael & Wunsch, Conny, 2006. "Are Training Programs More Effective When Unemployment Is High?," IZA Discussion Papers 2355, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2355
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    More about this item

    Keywords

    panel data; program evaluation; long-run effects; matching estimation; active labor market policy; causal effects;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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