The determinants of training participation in Singapore

This article uses the Singapore Labour Force survey data to examine the determinants of workers’ participation in training programmes in Singapore. The results show that different socio-demographic and employment related characteristics affect the training participation of workers. Well-educated and better paid workers are much more likely to participate in training programmes than others. Age has a positive impact on training participation for younger workers (under 37 years), but a negative effect on older workers’ participation. The results also indicate that occupational affiliations have a significant impact on training participation. We also find that married workers seem to be less likely to participate in training programmes, but the difference between married and single is only significant at the 10% level. Finally, gender does not have any significant effect at any conventional level although the coefficient on the female dummy is positive, suggesting females might be slightly more likely to participate in training programmes.     

Do German Welfare‐to‐Work Programmes Reduce Welfare Dependency and Increase Employment?

Abstract. During the last decade, many Western economies reformed their welfare systems with the aim of activating welfare recipients by increasing welfare‐to‐work programmes (WTWP) and job‐search enforcement. We evaluate the short‐term effects of three important German WTWP implemented after a major reform in January 2005 (‘Hartz IV’), namely short training, further training with a planned duration of up to three months and public workfare programmes (‘One‐Euro‐Jobs’). Our analysis is based on a combination of a large‐scale survey and administrative data that is rich with respect to individual, household, agency level and regional information. We use this richness of the data to base the econometric evaluation on a selection‐on‐observables approach. We find that short‐term training programmes, on average, increase their participants' employment perspectives. There is also considerable effect heterogeneity across different subgroups of participants that could be exploited to improve the allocation of welfare recipients to the specific programmes and thus increase overall programme effectiveness.     

Literature analysis of the evaluation of public training programmes in the USA,Europe and China: Implications for the evaluation of farmer training programmes in China

This review aims to inform the evaluation of Chinese farmer training programmes through comparison with studies assessing public training programmes in the USA and Europe. The results of comparative analysis from 62 studies in the USA, Europe and Mainland China suggest that evaluation studies of the farmer training programme should measure the effectiveness of farmer training on agricultural income. Considering the cost and availability of data, cross‐section estimation may be an effective way to evaluate the effectiveness of farmer training programmes in China, but on the basis of controlling the initial demographic characteristics of samples. In particular, political status (whether a party member of Communist Party of China or not), position (whether village cadre or not) and region of residence are considered to be important determinants that impact the effectiveness of farmer training programmes in China. This review sets out directions for the future study of Chinese training programmes, with particular emphasis given to the need for research into the causal effects of different training courses, the dynamic effects arising from variation in the duration of training, and the medium‐run or long‐run effects of training programmes.     

The macroeconomic and food security implications of price interventions in the Philippine rice market

The Philippine government has a number of policy interventions in the domestic rice market aimed at promoting national food security. This paper examines the economy-wide and food security implications of three of the main policies: a ceiling on prices paid by rice consumers; a floor on prices received by paddy producers; and a subsidy on prices paid for seeds by paddy farmers. These programmes have been subject to domestic criticism on allocative efficiency and distributional grounds. We examine the effects of removing the programmes using an economy-wide model with detailed treatment of agricultural activity, land use, and food security measures. We find that the programmes make a small contribution to food security, for a modest budgetary outlay. The allocative efficiency gains available from ending the programmes are small, and may be outweighed by the potential for adverse short-run macroeconomic consequences.     

An evaluation of government- sponsored vocational training programmes for the unemployed in urban Russia

This is the first study on the effects of active labour marketprograms such as training in Russia. We use the data from theofficial unemployment register combined with information fromthe follow-up survey in a large industrial city in the year2000. The method of propensity score matching was applied tolearn whether participation in the training programmes increasedthe monthly salaries of participants. The findings suggest thatindividuals tend to benefit from the participation in the trainingprogrammes. However, one year later, this effect disappeared.     

Do the skilled and prime-aged unemployed benefit more from training? Effect heterogeneity of public training programmes in Germany

This study analyses the treatment effects of public training programmes for the unemployed in Germany. Based on propensity score matching methods, we extend the picture that has been sketched in previous studies by estimating the treatment effects of medium-term programmes for different skill and age groups. Our results indicate that programme participation has a positive impact on employment probabilities and earnings for almost all sub-groups. We find little evidence for the presence of heterogeneous treatment effects, and the magnitude of the differences is quite small. Our results thus – at least in part – conflict with the strategy to provide training increasingly to individuals with better employment prospects.     

Estimating the employment effects of education for disabled workers in Norway

In this paper we evaluate the effectiveness of educational programmes used as an employment strategy for disabled workers in Norway. To obtain these estimates we follow the employment career of a sample of participants in educational programmes and nonparticipants three years after they had left the vocational rehabilitation benefit system. We specify an employment outcome model that includes both unobserved heterogeneity and selection bias due to correlation between unmeasured factors and a person's training status. Even though participants in educational programmes have employment rates that are around eight percentage points higher than those who did not participate in such programmes, econometric selection models produce a training effect for education not significantly different from zero. First version: Jan 2001/Final version received: April 2002  The data were provided by The Norwegian Social Data Service in Bergen. I would like to thank Dag Kiberg for preparing the raw data. All the data are gathered from sources at The Directorate of Labour, The Social Insurance Organization and Statistics Norway. None of the mentioned institutions are in any circumstances responsible for the analysis or for the conclusions drawn from it.     

Effects of Public Job Training Programmes on the Employment Outcome of Displaced Workers: Results of a Matching Analysis,a Fixed Effects Model and an Instrumental Variable Approach Using Korean Data

This study employs the matching method, the fixed effects model and the instrumental variable (IV) approach to estimate the employment effect of training programmes on displaced workers in Korea. The results of the matching and logit analyses suggest a positive training effect on employment. However, the fixed effects model showed a substantial reduction in the estimated training effect and the IV approach showed no training effect. This provides clear evidence of positive selection into training. The results of the IV approach suggest that training favoured male and educated workers, whereas female, less educated and older workers were disadvantaged by training programmes.     

Labour market programmes and the equity-efficiency trade-off

This paper studies optimal labour market policy in a society where differently gifted individuals can invest in training to further increase their labour market productivity and where the government seeks both efficiency and equity. Frictions in the matching process create unemployment and differently skilled workers face different levels of risk of unemployment. We show that in such an environment, training programmes that are targeted at the disadvantaged workers complement passive transfers (UI benefits), unlike general training subsidies. Combining passive subsidies with a training subsidy conditioned on the individual being unemployed (for a period) – the typical Active Labour Market Programme – creates a favourable trade-off between equity and efficiency and this encourages high spending on training.     

Participation in universal prevention programmes

We analyse family decisions to participate in community-based universal substance-abuse prevention programmes through the framework of expected utility theory. Family functioning, which has been shown to be a good indicator of child risk for substance abuse, provides a useful reference point for family decision making. Our results show that well-functioning families (with children at low risk for substance use) should have the lowest incentive to participate, but that high-risk families may also opt out of prevention programmes. For programmes that are most effective for high-risk youth, this could be a problem. Using data from the Strengthening Families Programme (SFP) and the Washington Healthy Youth Survey (HYS), we empirically test the implications of our model and find that at least for one measure of family functioning those families with children most likely to be at risk for substance use are opting out of the programme.     

The effects of domestic rice market interventions outside business-as-usual conditions for imported rice prices

The Philippine government intervenes in the domestic rice market through the imposition of import tariffs and the provision of producer and consumer subsidies. While policymakers are aware that these programmes come with allocative efficiency costs, they justify the programmes on the grounds that they insulate the domestic economy from unexpected price spikes in the international rice market. An interesting matter for policy evaluation is to quantify the insulation benefit that the programmes provide in circumstances of sudden severe import price spikes. To examine this question, we undertake a dynamic computable general equilibrium (CGE) simulation in which the Philippines is subject to an external rice price shock. We find that the insulation benefit of the support programmes under a 2008-like event is worth approximately 0.10% of real consumption. However, the cost of insuring against these price spikes is significant. We estimate the annual cost of the rice market interventions at approximately 0.40% of real consumption.     

The efficiency of immunization of infants by local government

The paper makes use of data envelopment analysis (DEA) to measure the cost and production efficiency of local government programmemes for childhood immunization in urban and rural settings in Australia. Model specification is tested for validity, methods are used for ranking efficient units and advanced statistical methods are used to establish confidence intervals around the efficiency estimates. Given the small data set, the cost and production models are valid, and it is concluded that while neither urban nor rural programmes are particularly efficient, there is more room for improvement in rural programmes. Ways of changing methods of delivery are suggested which may increase efficiency.     

Gender differences in the quality of the school-to-work transition in Spain

This article analyses to what extent gender affects the quality of the school-to-work transition in Spain, paying special attention to workers’ educational attainment. We estimate a four-equation system that explains the main obstacles young people face in their insertion process: part-time work, overeducation, fixed-term contracts and long unemployment spells; the model also considers the impact of the latter variable on the other three. Moreover, a synthetic indicator of transition quality based on the estimation of this model is developed. We conclude that men experience a better insertion process than women at every level of education (except for higher vocational training), although the gender gap is greater for long-cycle university programmes. Furthermore, when field of study is considered, men from most specializations enjoy a smoother transition than their female counterparts; nevertheless, women have the advantage in some female-dominated fields. A further analysis of gender differences reveals that they are due to the fact of being male or female to a great extent. The results also highlight that school-leavers from work-oriented programmes and those specialized in fields that provide them with more specific skills are more likely to succeed in the transition.     

Stick,Carrot and Skill Acquisition*

We evaluate the impact of specially designed youth unemployment programmes (YUPs), intended to provide young unemployed unskilled workers with skills. If unemployment among skilled workers is lower than among unskilled workers, YUPs imply that unemployment falls. However, YUPs potentially crowd out ordinary training. We set up an equilibrium matching model with endogenous skill choice and examine the impact of an increase in programme participation. We derive a condition for crowding out of ordinary training, as well as a condition for an increase in the skilled labour force and thereby reduced unemployment. The impact of YUPs on welfare and wage dispersion is also considered.     

MANAGEMENT TRAINING IN INDONESIAN PUBLIC ENTERPRISES: Concepts and Approaches

ABSTRACT * : The improvement of the proficiency and capabilities of management staff of public enterprises (BUMN) in Indonesia has become more important with the introduction of a public sector policy which focuses on the efficiency, cost recovery and profitability of public enterprises. Management training in Indonesian BUMN is in most cases an instrument of career development for management staff. Training programmes continue to be influenced by the training concepts of the civil service and reflect the fact that despite the business orientation of the official public sector policy, BUMN continue to be part of the political/administrative system. Business orientation, efficiency, entrepreneurship and profit orientation are seen as the most important characteristics of BUMN managers to be developed in the training programmes; however, management training also aims at the political socialization of BUMN managers into the national leadership. In the implementation of management training, public enterprises tend to cooperate most closely with their respective technical departments and the university sector. Considering the objectives of the public sector policy of the government, BUMN should be allowed to design and implement their management training without interference from other central government institutions.     

A decomposition of training probabilities

The determinants of workers' training probabilities are analysed. A distinction is made between the unconditional probability that a worker is employed by a firm that provides any training opportunities at all, and the conditional probability that the worker receives training given that s/he works for a firm that provides training. For this analysis a censored version of the bivariate probit model is applied. The results indicate that establishment size, industry dummies, type of schooling, age and experience affect only the unconditional probability, whereas the type of labour contract, working hours and job level affect only the conditional probability. Years of formal schooling affect both probabilities; more highly educated workers are both more likely to work for training-providing firms and, given that they work for such a firm, to be selected for training programmes.     

The Threat Effect of Active Labour Market Programmes*

In this paper, we estimate the threat effect of active labour market programmes (ALMPs) for a sample of unemployed men in Denmark. Threat effects of such programmes capture the impacts of a system of ALMPs prior to actual participation. Rational economic agents make search decisions based on the expected discounted value of unemployment, and the perceived risk of future participation in programmes may affect job‐search behaviour early in the unemployment spell. We find a strong and significant threat effect, which is shown to reduce average unemployment duration by two and a half weeks.     

The wage effects of training in Portugal: differences across skill groups,genders, sectors and training types

This article investigates the determinants and wage effects of training in Portugal. In a first stage, we show that there are considerable differences in training participation across groups of workers, with elder and low educated individuals participating substantially less. In a second stage, we show that training has a positive and significant impact on wages. The estimated wage return is about 30% for men and 38% for women. Discriminating between levels of education and working experience and the public and private sector reveals important differences across categories of workers. We find that women, low educated workers and workers with long working experience earn larger returns from training. The average effect of training is similar in the private sector and the public sector. However, differences across experience groups are larger in the private sector, while differences across education groups are larger in the public sector. We use three alternative classifications of training activities and find that training in the firm, training aimed to improve skills needed at the current job and training with duration less than a year are associated to larger wage gains.     

The environmental performance of firms: The role of foreign ownership, training, and experience

In this paper we extend the debate on the environmental implications of foreign direct investment in developing countries by examining a new mechanism through which foreign influence can affect the environmental performance of firms. We focus on the extent to which key workers who have had previous training or experience in a foreign owned firm transfer and utilise their knowledge gained to the benefit of the local environment. To this end we use detailed firm-level data on manufacturing firms in Ghana. Our econometric results suggest that the foreign training of a firm's decision maker does reduce fuel use, particularly so in foreign owned firms. Foreign ownership per se does not influence fuel use or total energy use but is found to increase electricity use, perhaps the cleanest form of energy used by Ghanaian firms.     

The impact of financial liberalization on bank efficiency: evidence from Latin America and Asia

This article investigates the impact of financial liberalization on bank efficiency, using data for a sample of over 4000 bank-year observations from ten emerging economies for the period 1991–2000. We use Data Envelopment Analysis (DEA) to calculate bank efficiency at the individual bank level. Bank efficiency measures are then aggregated at the country level to investigate the relationship between financial liberalization and bank efficiency, using a panel least square fixed-effects model. Overall, we find strong support for the positive impact of financial liberalization programmes on bank efficiency.