Estimating the effect of training on unemployment duration in West Germany : a discrete hazard-rate model with instrumental variables

  • We estimate a semiparametric single-risk discrete-time duration model to assess the effect of vocational training on the duration of unemployment spells. The data basis used in this study is the German Socio-Economic-Panel (GSOEP) for West Germany for the period from 1986 to 1994. To take into account a possible selection bias actual participation in vocational training is instrumented using estimates of a randomeffects probit model for the participation in qualification measures. Our main results show that training does have a significant short term effect of reducing unemployment duration but that this effect does not persist in the long run. JEL classifications: C41, J20, J64

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Author:Reinhard HujerGND, Kai-Oliver MaurerORCiDGND, Marc Wellner
Parent Title (German):[Frankfurter volkswirtschaftliche Diskussionsbeiträge ; Arbeitspapier Nr. 73]
Series (Serial Number):Frankfurter volkswirtschaftliche Diskussionsbeiträge (73)
Document Type:Working Paper
Date of Publication (online):2005/11/22
Year of first Publication:1997
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2005/11/22
Tag:discrete hazard models; instrumental variables; selection bias; training
Source:Frankfurter volkswirtschaftliche Diskussionsbeiträge ; 73. -
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoDeutsches Urheberrecht