Journal Article

Quick Job Entry or Long-Term Human Capital Development? The Dynamic Effects of Alternative Training Schemes

Aderonke Osikominu

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 80, issue 1, pages 313-342
Published in print January 2013 | ISSN: 0034-6527
Published online May 2012 | e-ISSN: 1467-937X | DOI: http://dx.doi.org/10.1093/restud/rds022
Quick Job Entry or Long-Term Human Capital Development? The Dynamic Effects of Alternative Training Schemes

More Like This

Show all results sharing these subjects:

  • Econometric and Statistical Methods; Special Topics
  • Education and Research Institutions
  • Mobility, Unemployment, and Vacancies

GO

Show Summary Details

Preview

This article investigates how precisely short-term, job search-oriented training programs as opposed to long-term, human capital intensive training programs work. We evaluate and compare their effects on time until job entry, stability of employment, and earnings. Further, we examine the heterogeneity of treatment effects according to the timing of training during unemployment as well as across different subgroups of participants. We find that participating in short-term training reduces the remaining time in unemployment and moderately increases job stability. Long-term training programs initially prolong the remaining time in unemployment, but once the scheduled program end is reached participants exit to employment at a much faster rate than without training. In addition, they benefit from substantially more stable employment spells and higher earnings. Overall, long-term training programs are well effective in supporting the occupational advancement of very heterogeneous groups of participants, including those with generally weak labor market prospects. However, from a fiscal perspective only the low-cost short-term training schemes are cost efficient in the short run.

Keywords: Training; Program Evaluation; Duration Analysis; DynamicTreatment Effects; Multiple Treatments; Active Labor Market Policy; J64; C41; J68; I28

Journal Article.  15154 words.  Illustrated.

Subjects: Econometric and Statistical Methods; Special Topics ; Education and Research Institutions ; Mobility, Unemployment, and Vacancies

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.