The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification

Michael Lechner, Ruth Miquel () and Conny Wunsch
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Ruth Miquel: University of St. Gallen

No 1684, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We analyse the effects of government-sponsored training for the unemployed conducted during East German transition. For the microeconometric analysis, we use a new, large and informative administrative database that allows us to use matching methods to reduce potential selection bias, to study different types of programmes, and to observe interesting labour market outcomes over 8 years. We find that, generally, all training programmes under investigation increase long-term employment prospects and earnings. However, as an important exception, the longer training programmes are on average not helpful for their male participants. At least part of the explanation for this negative result is that caseworkers severely misjudged the structure of the future demand for skills.

Keywords: active labour market policy; nonparametric identification; matching estimation; causal effects; programme evaluation; panel data; gender differences (search for similar items in EconPapers)
JEL-codes: J68 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2005-07
New Economics Papers: this item is included in nep-eec
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Citations: View citations in EconPapers (66)

Published - published in: German Economic Review, 2007, 8 (4), 468-509

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Related works:
Journal Article: The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification (2007)
Journal Article: The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification (2007)
Working Paper: The Curse and Blessing of Training the Unemployed in a Changing Economy: the Case of East Germany after Unification (2005)
Working Paper: The curse and blessing of training the unemployed in a changing economy: the case of East Germany after unification (2005)
Working Paper: The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany after Unification (2005)
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