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Estimating (Easily Interpreted) Dynamic Training Effects from Experimental Data

Bocar A. Ba, John Ham, Robert LaLonde and Xianghong Li

Journal of Labor Economics, 2017, vol. 35, issue S1, S149 - S200

Abstract: We estimate the effect of endogenous training participation on transitions in and out of employment for disadvantaged women in the Job Training Partnership Act (JTPA) study. Decomposing the effect of training on employment into its effects on transitions in and out of employment has the potential to develop more effective programs. We also consider a potentially serious identification problem that arises when individuals do not undertake training immediately, and we propose a test to shed light on this problem. We find that this problem is not important in our context. JTPA classroom training substantially reduced unemployment durations, and thus it complements programs that increase employment durations.

Date: 2017
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