We analyse the effects of government-sponsored training for the unemployed conducted during East German transition. For the microeconometric analysis, we use a new, large and informative administrative database that allows us to use matching methods to address potential selection bias, to study different types of programmes and to observe labour market outcomes over eight years. We find strong evidence that, on average, the training programmes under investigation increase long-term employment prospects and earnings. However, as an important exception, the longer training programmes are not helpful for their male participants. At least part of the explanation for this negative result is that caseworkers severely misjudged the structure of the future demand for skills.
Country
Germany
Publication Year
2007
Training
Classroom/vocational training
Labour market status
Unemployed (All cat.)
Funding Source
Other
Outcome Variable
Employment status
Income/wages
Data Source
Administrative
Evaluation Method
PSM