Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92433
Authors: 
Fitzenberger, Bernd
Prey, Hedwig
Year of Publication: 
1996
Series/Report no.: 
Discussion Paper, Center for International Labor Economics (CILE), University of Konstanz 36
Abstract: 
Support of training has been one of the most important instruments of active labor market policy in East Germany. This paper attempts an evaluation of the effects of training on future employment and future wages of trainees. The analysis distinguishes between measures within and outside of the firm of the employee and whether the trainee receives public income maintenance. After describing the labor market developments in East Germany, we illustrate the evaluation problem. Then, we estimate a simultaneous model for participation in training, employment, and wages. Taking account of selection effects before participation, our findings mostly suggest positive effects of training on employment or wages. In this respect, public income support is only successful when training takes place in external institutions but not in the firm where the person is employed.
Subjects: 
East Germany
evaluation of training
employment probability
wage
selection bias
labor market policy
JEL: 
J20
J60
C33
Document Type: 
Working Paper

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