Evaluating the Dynamic Employment Effects of Training Programs in East Germany Using Conditional Difference-in-Differences

Annette Bergemann, Bernd Fitzenberger and Stefan Speckesser ()

No 1848, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This study analyzes the employment effects of training in East Germany. We propose and apply an extension of the widely used conditional difference-in-differences evaluation method. Focusing on transition rates between nonemployment and employment we take into account that employment is a state dependent process. Our results indicate that using transition rates is more appropriate and informative than using unconditional employment rates as commonly done in the literature. Training as a first participation in a program of Active Labor Market Policies shows zero to small positive effects both on reemployment probabilities and on probabilities of remaining employed with notable variation over the different start dates of the program.

Keywords: conditional difference-in-differences; employment dynamics; evaluation of active labor market policy in East Germany; nonparametric matching; Ashenfelter's Dip; bootstrap (search for similar items in EconPapers)
JEL-codes: C14 C23 H43 J64 J68 (search for similar items in EconPapers)
Pages: 87 pages
Date: 2005-11
New Economics Papers: this item is included in nep-hrm and nep-pbe
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Citations: View citations in EconPapers (69)

Published - revised version published in: Journal of Applied Econometrics, 2009, 24 (5), 797-823

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Related works:
Journal Article: Evaluating the dynamic employment effects of training programs in East Germany using conditional difference-in-differences (2009)
Working Paper: Evaluating the Dynamic Employment Effects of Training Programs in East Germany Using Conditional Difference-in-Differences (2004)
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