Workplace Training Programs: Instruments for Human Capital Improvements or Screening Devices?
Irene Brunetti and
Lorenzo Corsini ()
MPRA Paper from University Library of Munich, Germany
In this paper we analyse the effect of an Italian training program on the re-employment probability of young unemployed workers. The program consists solely of workplace training and is coordinated by employment centre, but it is fully implemented by firms. We develop a discrete duration analysis and our results suggest that workplace training improves only the immediate re-employability of trained workers, failing to bestow them with durable human capital improvements. These results appear to be robust to spurious duration dependence and to self-selection. Our analysis focuses on the role of unobserved heterogeneity and, accounting for it, we show that the training implementation is useful to sort “good” trainees from “bad” ones: therefore we suggest that firms are exploiting training as a screening device.
Keywords: duration model; policy evaluation; propensity score matching; screening device; workplace training; youth unemployment. (search for similar items in EconPapers)
JEL-codes: C41 I38 J64 J68 M53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hrm and nep-lab
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