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Evaluating the Dynamic Employment Effects of Training Programs in East Germany Using Conditional Difference-in-Differences
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Evaluating the Dynamic Employment Effects of Training Programs in East Germany Using Conditional Difference-in-Differences

Author

Listed:
  • Bergemann, Annette

    (University of Groningen)

  • Fitzenberger, Bernd

    (Institute for Employment Research (IAB), Nuremberg)

  • Speckesser, Stefan

    (University of Westminster)

Abstract

This study analyzes the employment effects of training in East Germany. We propose and apply an extension of the widely used conditional difference-in-differences evaluation method. Focusing on transition rates between nonemployment and employment we take into account that employment is a state dependent process. Our results indicate that using transition rates is more appropriate and informative than using unconditional employment rates as commonly done in the literature. Training as a first participation in a program of Active Labor Market Policies shows zero to small positive effects both on reemployment probabilities and on probabilities of remaining employed with notable variation over the different start dates of the program.

Suggested Citation

  • Bergemann, Annette & Fitzenberger, Bernd & Speckesser, Stefan, 2005. "Evaluating the Dynamic Employment Effects of Training Programs in East Germany Using Conditional Difference-in-Differences," IZA Discussion Papers 1848, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1848
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    More about this item

    Keywords

    conditional difference-in-differences; employment dynamics; evaluation of active labor market policy in East Germany; nonparametric matching; Ashenfelter's Dip; bootstrap;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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