Estimating the Effect of Vocational Training on Unemployment Duration in West Germany / Auswirkungen beruflicher Weiterbildung auf die Arbeitslosigkeitsdauer in Westdeutschland: A Discrete Hazard Rate Model with Instrumental Variables / Ein diskretes Hazardratenmodell mit Instrumentvariablen

Hujer Reinhard (), Maurer Kai-Oliver and Wellner Marc
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Hujer Reinhard: Department of Economics, Johann Wolfgang Goethe-University, Mertonstr. 17, 60054 Frankfurt am Main, Germany
Maurer Kai-Oliver: Frankfurt am Main
Wellner Marc: Frankfurt am Main

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 1999, vol. 218, issue 5-6, 619-646

Abstract: This paper is concerned with the effect of vocational training on individual unemployment duration in West Germany. The data base used in this study is the German Socio-Economic Panel (GSOEP) for West Germany for the period from 1984 to 1994. The econometric model is a semi-parametric single risk discrete time duration model. To take into account a possible selection bias, an instrumental variable for actual participation in vocational training is used. This instrumental variable is the predicted participation propensity obtained by estimating a probit model for the participation in vocational training measures. The main results show that prior participation does have a significant effect on the reduction of unemployment duration in the short run. However, this effect does not persist in the long run.

Keywords: Discrete hazard models; vocational training; selection bias; instrumental variables; Diskrete Hazardratenmodelle; berufliche Weiterbildung; Selektionsverzerrung; Instrumentvariablen (search for similar items in EconPapers)
Date: 1999
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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:218:y:1999:i:5-6:p:619-646

DOI: 10.1515/jbnst-1999-5-606

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