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Employment and Earnings Effects of Awarding Training Vouchers in Germany

Annabelle Doerr, Bernd Fitzenberger, Thomas Kruppe (), Marie Paul and Anthony Strittmatter ()

ILR Review, 2017, vol. 70, issue 3, 767-812

Abstract: Participation in intensive training programs for the unemployed in Germany is allocated by awarding training vouchers. Using rich administrative data for all vouchers and actual program participation, the authors provide first estimates of the short-run and long-run employment and earnings effects of receiving a training voucher award based on a selection-on-observables assumption. The results imply that, after the award, voucher recipients experience long periods of lower labor market success compared to had they not received training vouchers. Small positive employment effects and no gains in earnings were observed four to seven years after the receipt of the voucher award. In addition, the findings suggest stronger positive effects both for all low-skilled individuals who were awarded and redeemed a voucher and for low-skilled and medium-skilled individuals who chose to take degree courses than for higher-skilled recipients.

Keywords: active labor market policies; training vouchers; treatment effects (search for similar items in EconPapers)
Date: 2017
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http://ilr.sagepub.com/content/70/3/767.abstract (text/html)

Related works:
Working Paper: Employment and earnings effects of awarding training vouchers in Germany (2014) Downloads
Working Paper: Employment and Earnings Effects of Awarding Training Vouchers in Germany (2014) Downloads
Working Paper: Employment and earnings effects of awarding training vouchers in Germany (2014) Downloads
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