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Journal Article

Many Dropouts? Never Mind! – Employment Prospects of Dropouts from Training Programs

Marie Paul
Annals of Economics and Statistics
No. 119/120, SPECIAL ISSUE ON HEALTH AND LABOUR ECONOMICS (December 2015), pp. 235-267
Published by: GENES on behalf of ADRES
DOI: 10.15609/annaeconstat2009.119-120.235
Stable URL: http://www.jstor.org/stable/10.15609/annaeconstat2009.119-120.235
Page Count: 33
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Many Dropouts? Never Mind! – Employment Prospects of Dropouts from Training Programs
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Abstract

The employment effects of training programs for the unemployed are frequently studied, but little is known about the number, the characteristics, and the labor market prospects of those who drop out of these programs. The aim of this paper is to contribute to filling this gap. Dropouts are identified in German administrative data. The mediumand long-term effect of dropout is estimated using a bivariate dynamic random effects probit model, which takes into account state dependence and selection on unobservables. The model is estimated with Markov Chain Monte Carlo (MCMC) methods. JEL: J68, I28, C33. / KEY WORDS: Active Labor Market Policies, Evaluation, Administrative Data.

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