Explaining differences in job retention between alien and nonalien workers after an in-company training

Maryam H’madoun and Walter Nonneman

Applied Economics, 2012, vol. 44, issue 1, 93-103

Abstract: This study focuses on the job retention of unemployed workers, after they attended a subsidized in company training programme in Flanders. Using a new large scale dataset of the Flemish Labour Exchange, we look for differences in the probability of employment between aliens and nonaliens during the 36 months following their on the job training. We further investigate whether differences persist after controlling for several socio-economic characteristics and labour market related variables. Estimating a modified probit model we find that, on average, being an alien lowers the probability of employment after training by approximately 15%. This effect reduces to 10% when controlling for other variables. The effect of education on a trainee's employment chances differs for aliens and nonaliens. Aliens have a markedly lower return on investment in education. Good language skills and a longer in company training period also increase employment probability, but more so for aliens. Other control variables do not significantly improve the explanatory power of the model. The main conclusion is that even after a tailored on the job training, aliens still lag behind nonaliens in terms of employment success.

Date: 2012
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DOI: 10.1080/00036846.2010.500271

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