Kluve, Jochen Rinne, Ulf Uhlendorff, Arne Zhao, Zhong
Year of Publication:
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6565
This paper assesses the importance of reverse causality when evaluating the impact of training duration for unemployed workers. We use planned duration as an instrumental variable for actual duration. Our results suggest that the potential endogeneity of exits seems to be only relevant in the lower and upper part of the treatment duration distribution.
treatment duration local average treatment effect dropouts