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End-of-Year Spending and the Long-Run Employment: Effects of Training Programs for the Unemployed

Bernd Fitzenberger, Marina Furdas and Christoph Sajons ()

Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: This study re-estimates the employment effects of training programs for the unemployed using exogenous variation in participation caused by budget rules in Germany in the 1980s and early 1990s, resulting in the infamous "end-of-year spending". In addition to estimating complier effects with 2SLS, we implement a exible control-function approach to obtain the average treatment effect on the treated (ATT). Our findings are: Participants who are only selected for budgetary reasons do not benefit from training programs. However, the ATT estimates suggest modest positive effects in the long run. Longer programs are more effective than shorter and more practice-oriented programs.

Keywords: Training for the unemployed; budgetary conditions; administrative data; Germany (search for similar items in EconPapers)
JEL-codes: J64 J68 H43 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur
Date: 2017
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https://www.econstor.eu/bitstream/10419/168310/1/VfS-2017-pid-7249.pdf (application/pdf)

Related works:
Working Paper: End-of-Year Spending and the Long-Run Employment Effects of Training Programs for the Unemployed (2016) Downloads
Working Paper: End-of-year spending and the long-run employment effects of training programs for the unemployed (2016) Downloads
Working Paper: End-of-year spending and the long-run employment effects of training programs for the unemployed (2016) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168310

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