Workplace Training Programs: Instruments for Human Capital Improvements or Screening Devices?

Irene Brunetti and Lorenzo Corsini

MPRA Paper from University Library of Munich, Germany

Abstract: 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)
Date: 2014-05-12
New Economics Papers: this item is included in nep-hrm and nep-lab
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