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Licensed Unlicensed Requires Authentication Published by De Gruyter November 30, 2019

The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification

Michael Lechner, Ruth Miquel and Conny Wunsch
From the journal German Economic Review


We analyse the effects of government-sponsored training for the unemployed conducted during East German transition. For the microeconometric analysis, we use a new, large and informative administrative database that allows us to use matching methods to address potential selection bias, to study different types of programmes and to observe labour market outcomes over eight years. We find strong evidence that, on average, the training programmes under investigation increase long-term employment prospects and earnings. However, as an important exception, the longer training programmes are not helpful for their male participants. At least part of the explanation for this negative result is that caseworkers severely misjudged the structure of the future demand for skills.

Published Online: 2019-11-30
Published in Print: 2007-12-01

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