Vocational Training of Unemployed Workers in Belgium

Bart Leo Wim Cockx ()

No 682, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: In this paper we estimate, for the 1989-93 period in Belgium, the effect of vocational classroom training on the rate of transition from unemployment. We propose a "control function" estimator accounting for variable treatment effects. In the absence of interaction effects between explanatory variables this estimator identifies treatment effects free from selection bias. A natural experiment induces exogenous sub-regional variation in the training supply. This provides over-identifying restrictions that cannot be rejected. During participation, the transition rate decreases by 23% to 30%. Afterwards it increases by 47% to 73%. Making training available for a broader population would, however, reduce the effectiveness of the programme.

Keywords: vocational training; evaluation; transition models; job-search (search for similar items in EconPapers)
JEL-codes: C41 J24 J64 J68 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2003-01
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