Evaluating public sector sponsored training in East Germany |
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| Authors: | Fitzenberger B; Prey H |
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| Institution: | z Department of Economics, University of Mannheim, 68131 Mannheim, Germany
y University of St. Gallen, Guisanstr. 92, 9010 St. Gallen, Switzerland |
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| Abstract: | Support of training has been a very important instrument ofactive labor market policy in East Germany. This paper attemptsan evaluation of the employment and wage effects of trainingsupported by public income maintenance outside of a firm. Afterdescribing the labor market developments in East Germany, weillustrate the evaluation problem. Then, we estimate a simultaneousmodel for participation in training, employment, and wages.Taking account of selection effects before participation, ourfindings mostly suggest positive though only partially significantlong-run effects of training on employment or wages. |
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