The impact of training on unemployment duration in West Germany : combining a discrete hazard rate model with matching techniques

  • In this study we are concerned with the impact of vocational training on the individual’s unemployment duration in West Germany. The data basis used is the German Socio-Economic Panel (GSOEP) for the period from 1984 to 1994. To resolve the intriguing sample selection problem, i.e. to find an adequate control group for the group of trainees, we employ matching methods which were developed in the statistical literature. These matching methods uses as the main matching variable the individual propensity score to participate in training, which is obtained by estimating a random effects probit model. On the basis of the matched sample a discrete time hazard rate model is utilized to assess the impact of vocational training on unemployment duration. Our results indicate, that training significantly raises the transition rate of unemployed into employment in the short but not in the long run. JEL classification: C40, J20, J64

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Author:Reinhard HujerGND, Kai-Oliver MaurerORCiDGND, Marc Wellner
Parent Title (German):[Frankfurter volkswirtschaftliche Diskussionsbeiträge ; Nr. 74]
Series (Serial Number):Frankfurter volkswirtschaftliche Diskussionsbeiträge (74 1st. rev.)
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; matching techniques; selection bias
Edition:First revision: October 1997
Page Number:42
Source:Frankfurter volkswirtschaftliche Diskussionsbeiträge ; 74. - 1. rev.: October 1997. -
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoDeutsches Urheberrecht