Program participation, labor force dynamics, and accepted wage rates

TY - JOUR

T1 - Program participation, labor force dynamics, and accepted wage rates

AU - Munch, Jakob Roland

AU - Skipper, Lars

PY - 2008

Y1 - 2008

N2 - We apply a recently suggested econometric approach to measure the effects of active labor market programs on employment, unemployment, and wage histories among participants. We find that participation in most of these training programs produces an initial locking-in effect and for some even a lower transition rate from unemployment to employment upon completion. Most programs, therefore, increase the expected duration of unemployment spells. However, we find that the training undertaken while unemployed successfully increases the expected duration of subsequent spells of employment for many subpopulations. These longer spells of employment come at a cost of lower accepted hourly wage rates

AB - We apply a recently suggested econometric approach to measure the effects of active labor market programs on employment, unemployment, and wage histories among participants. We find that participation in most of these training programs produces an initial locking-in effect and for some even a lower transition rate from unemployment to employment upon completion. Most programs, therefore, increase the expected duration of unemployment spells. However, we find that the training undertaken while unemployed successfully increases the expected duration of subsequent spells of employment for many subpopulations. These longer spells of employment come at a cost of lower accepted hourly wage rates

U2 - 10.1016/S0731-9053(07)00008-4

DO - 10.1016/S0731-9053(07)00008-4

M3 - Journal article

SN - 0731-9053

VL - 21

SP - 197

EP - 262

JO - Advances in Econometrics

JF - Advances in Econometrics

ER -