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Treatment effect of job‐training programmes on unemployment duration in Slovakia
Author(s) -
Dijk Bram
Publication year - 2006
Publication title -
statistica neerlandica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.52
H-Index - 39
eISSN - 1467-9574
pISSN - 0039-0402
DOI - 10.1111/j.1467-9574.2006.00311.x
Subject(s) - unemployment , duration (music) , hazard , spell , hazard ratio , training (meteorology) , demographic economics , variable (mathematics) , proportional hazards model , population , estimation , instrumental variable , multivariate statistics , econometrics , economics , labour economics , demography , statistics , mathematics , economic growth , geography , sociology , confidence interval , management , art , mathematical analysis , chemistry , literature , organic chemistry , meteorology , anthropology
There is a large literature evaluating job‐training programmes. In this paper, we evaluate three such job‐training programmes that are used in Slovakia. Individuals participating in a job‐training programme during their unemployment spell are usually not a random subsample of the population. To determine the treatment effect of a job‐training programme on unemployment duration, one has to correct for this selection effect. Therefore, we use a multivariate mixed proportional hazard‐type model to describe the hazard of getting a job simultaneously with the hazard of entering a programme. We allow for a heterogeneous treatment effect and for the treatment effect to vary over time. Furthermore, we add the monthly unemployment rate as a time‐varying explanatory variable. The estimation results show that two of the three programmes shorten the unemployment duration quite substantially.