Estimating the Effect of Training on Unemployment Duration in West Germany - A Discrete Hazard-Rate Model with Instrumental Variables

R. Hujer, K.-O. Maurer and M. Wellner
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R. Hujer: Johann Wolfgang Goethe-University, Frankfurt/Main
K.-O. Maurer: Johann Wolfgang Goethe-University, Frankfurt/Main
M. Wellner: Johann Wolfgang Goethe-University, Frankfurt/Main

Econometrics from EconWPA

Abstract: We estimate a semiparametric single-risk discrete-time duration model to assess the effect of vocational training on the duration of unemployment spells. The data basis used in this study is the German Socio-Economic- Panel (GSOEP) for West Germany for the period from 1986 to 1994. To take into account a possible selection bias ac-tual participation in vocational training is instrumented using estimates of a random-effects probit model for the participation in qualification measures. Our main results show that training does have a significant short term effect of reducing unemploy-ment duration but that this effect does not persist in the long run.

JEL-codes: C41 J20 J64 (search for similar items in EconPapers)
Date: 1997-04-29
Note: 37 pages, 5 figures, 4 tables
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpem:9704001

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