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Title: Long run Effects of Public Sector Sponsored Training in West Germany

Author(s): Michael Lechner, Ruth Miquel and Conny Wunsch

Publication Date: January 2005

Keyword(s): active labour market policy, matching estimation, panel data and programme evaluation

Programme Area(s): Labour Economics

Abstract: Between 1991 and 1997 West Germany spent on average about 3.6bn euro per year on public sector sponsored training programmes for the unemployed. We base our empirical analysis on a new administrative database that plausibly allows for selectivity correction by microeconometric matching methods. We identify the effects of different types of training programmes over a horizon of more than seven years. Using bias corrected weighted multiple neighbours matching we find that all programmes have negative effects in the short run and positive effects over a horizon of about four years. For substantive training programmes with duration of about two years gains in employment probabilities of more than 10% points appear to be sustainable, but come at the price of large negative lock-in effects.

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Bibliographic Reference

Lechner, M, Miquel, R and Wunsch, C. 2005. 'Long run Effects of Public Sector Sponsored Training in West Germany'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4851