Treatment effect of job‐training programmes on unemployment duration in Slovakia

Bram van Dijk

Statistica Neerlandica, 2006, vol. 60, issue 1, 57-72

Abstract: There is a large literature evaluating job‐training programmes. In this paper, we evaluate three such job‐training programmes that are used in Slovakia. Individuals participating in a job‐training programme during their unemployment spell are usually not a random subsample of the population. To determine the treatment effect of a job‐training programme on unemployment duration, one has to correct for this selection effect. Therefore, we use a multivariate mixed proportional hazard‐type model to describe the hazard of getting a job simultaneously with the hazard of entering a programme. We allow for a heterogeneous treatment effect and for the treatment effect to vary over time. Furthermore, we add the monthly unemployment rate as a time‐varying explanatory variable. The estimation results show that two of the three programmes shorten the unemployment duration quite substantially.

Date: 2006
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