THE IMPACT OF TRAINING PROGRAMMES ON WAGES IN FRANCE: AN EVALUATION OF THE “QUALIFYING CONTRACT” USING PROPENSITY SCORES

Sofia Pessoa e Costa () and Stéphane Robin

Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg

Abstract: This paper evaluates the impact of a widely-used French training programme for youth on earnings. This programme is designed to increase labour market experience and education, validated by a formal diploma. It is not sure, however, whether this diploma and a similar diploma acquired through initial training have the same effect on post-training wages. To answer this question, we contrast the 2003 net wages of a group of participants enrolled in 1998 (the “treatment” group) to the 2003 net wages of a control group. The controls are individuals who completed their initial training in 1998 with diplomas similar to those obtained by the treated at the end of the programme. Using propensity score matching, we find a significantly positive effect of the treatment on the treated: participants in the programme benefit, five years after participation, from a positive wage premium. This suggests that firms do not simply value education: they value it more if it is coupled with some degree of labour market experience.

Keywords: active labour market policies; training programmes for youth; propensity score matching. (search for similar items in EconPapers)
JEL-codes: C14 C21 I28 J68 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-edu and nep-lab
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ulp:sbbeta:2007-18

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