Differential effects of active labour market programs for the unemployed

Sianesi, Barbara

doi:10.1016/j.labeco.2007.04.004

“…A strand of the literature analyses whether training programmes are tools to integrate the unemployed into the work force. Training programmes are found to have a modest or no effect on unemployment exit rates (Gerfin and Lechner, 2002;Andrén and Andrén, 2006;Crépon et al, 2007;Lechner et al, 2008;Lalive et al, 2008;Sianesi, 2008) and on wages (Heckman et al, 1999). Positive effects are instead found on the future employment stability (Crépon et al, 2007;Lechner et al, 2008) and Jones et al (2009) show that training is significantly and positively associated with job satisfaction.…”

Section: Introductionmentioning

confidence: 94%

Retaining through training even for older workers

Picchio

¹

,

Ours

²

2013

Economics of Education Review

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Forschungsinstitut zur Zukunft der ArbeitInstitute for the Study The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public.IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. This paper investigates whether on-the-job training has an effect on the employability of workers. Using data from the Netherlands we disentangle the true effect of training incidence from the spurious one determined by unobserved individual heterogeneity. We also take into account that there might be feedback from shocks in the employment status to future propensity of receiving firm-provided training. We find that firm-provided training significantly increases future employment prospects. This finding is robust to a number of robustness checks. It also holds for older workers, suggesting that firm-provided training may be an important instrument to retain older workers at work.JEL Classification: C33, C35, J21, J24, M53

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“…They showed that participants had much higher subsequent employment rates than similar unemployed persons, who did not take up a subsidized job. Likewise, evidence for Britain (Dorsett 2006) and Sweden (Sianesi 2008;Carling and Richardson 2004;Fredriksson and Johansson 2008;Forslund et al 2004) suggested that wage subsidies had a positive effect on employment probabilities of the participants. Turning to the few results from social experiments on subsidy vouchers, Burtless (1985) found that unemployed persons with a voucher were less likely to find employment than job-seekers without vouchers.…”

Section: Literature Reviewmentioning

confidence: 99%

Eingliederungszuschüsse und Entlohnung: empirische Evidenz auf Basis von Individualdaten

Stephan

¹

2010

ZAF

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Abstract In Germany, targeted wage subsidies to employers are an important instrument of active labor market policy. This paper compares the wages of individuals taking up a subsidized job with those of otherwise similar individuals who found an unsubsidized job, combining propensity score matching with a differences-in-differences strategy. The results indicate for the short-run that subsidized jobs are not associated with gains or losses regarding daily wages. Nonetheless, because subsequent employment rates of subsidized persons are higher on average, we find a positive relationship between cumulated wages and subsidization. Terms of use: Documents in JEL classification J31 · J38 · J58

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“…For instance, Dorsett (2006), who compares the effectiveness of the four options of the New Deal for Young People in the UK, finds that the employment option performs better than other options, namely full-time education and training, the voluntary sector and the environmental task force. Sianesi (2008) investigates the differential performance of six Swedish active labour market programs for the unemployed. She finds that employment subsidies perform best by far, followed by trainee replacement and, by a long stretch, labour market training.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Like in previous studies using matching techniques for the evaluation of ALMPs (see, for instance, Lechner et al, 2005, Sianesi, 2008, Stenberg and Westerlund, 2008 11 Unfortunately, we have no information on the market value of the firm (like its profit or its market share). However, to control for the remaining differences in terms of unemployment rate and of labour demand across these eight labour markets, we take into account the value of the unemployment/vacancy ratio U/V defined as the number of unemployed persons divided by the number of vacant jobs in the local labour market where the individual lives.…”

Section: Validity Of the Matching Proceduresmentioning

confidence: 99%

Estimating the effect of a retraining program on the re-employment rate of displaced workers

Cavaco

¹

,

Fougère

²

,

Pouget

³

2010

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. ABSTRACT Estimating the Effect of a Retraining Program on the Re-Employment Rate of Displaced WorkersIn this paper we estimate by matching techniques the effects of a French retraining program on the reemployment rate of displaced workers. This program, called "Conventions de conversion", was intended to improve reemployment prospects of displaced workers by proposing them retraining and job seeking assistance for a period of six months beginning just after the dismissal. Our empirical analysis is based upon non-experimental data collected by the French Ministry of Labour. Matching estimates show that this program succeeded in increasing the employment rate of trainees by approximately 6 points of percentage in the medium-term, namely in the second and third years after the date of entry into the program. This improvement is essentially due to an increase of their reemployment rate in regular jobs, namely jobs under long-term labour contracts.JEL Classification: C41, J24, J64, J68

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Differential effects of active labour market programs for the unemployed

Cited by 145 publications

References 30 publications

Retaining through training even for older workers

Retaining through training even for older workers

Eingliederungszuschüsse und Entlohnung: empirische Evidenz auf Basis von Individualdaten

Estimating the effect of a retraining program on the re-employment rate of displaced workers

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