Employment and Earnings Effects of Awarding Training Vouchers in Germany

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

No 8454, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In 2003, Germany moved from a system in which participants in training programs for the unemployed are assigned by caseworkers to an allocation system using vouchers. Based on the rich administrative data for all vouchers and on actual program participation, we provide inverse probability weighting and ordinary least squares estimates of the employment and earnings effects of a voucher award. Our results imply that after the award, voucher recipients experience long periods of lower labor market success. On average, there are only small positive employment effects and no gains in earnings even four years after the voucher award. However, we do find significantly positive effects both for low-skilled individuals and for degree courses. The strong positive selection effects implied by our estimates are consistent with sizeable cream-skimming effects.

Keywords: active labor market policies; training vouchers; treatment effects evaluation; administrative data (search for similar items in EconPapers)
JEL-codes: C21 H43 J68 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2014-09
New Economics Papers: this item is included in nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Related works:
Journal Article: Employment and Earnings Effects of Awarding Training Vouchers in Germany (2017)
Working Paper: Employment and earnings effects of awarding training vouchers in Germany (2014)
Working Paper: Employment and earnings effects of awarding training vouchers in Germany (2014)
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