Active Labour Market Policies & Stable Regular Employment Differential Effects of Varying Types of Training for Job-Seekers in Belgium

Jonas Wood , University of Antwerp
Karel Neels, University of Antwerp
Suncica Vujic, University of Antwerp

Training programs offered to unemployed job-seekers are commonly assumed to enhance their employment opportunities – be it by enhancing basic competences, occupation-specific skills, work experience or even one’s network with potential employers – and despite the inconclusive nature of available literature, a considerable amount of previous studies presents empirical evidence for this positive effect. However the wide variety of training programs in the context of ALMPs is begging for an assessment of the effectiveness and direct comparison of such programs, depending on their design features. This study is the first to unpack training programs into different (sub)types and compare the effectiveness depending on their design features. Using dynamic propensity score matching and hazard models in a selection-on-observables approach, we evaluate the effectiveness of participation in all training types, but also directly compare the effectiveness of different types of training programs vis a vis one another in a multiple treatment framework. Our results indicate that, despite idiosyncrasies in the pattern of effects over time, all types of training programs positively affect unemployed job-seekers hazard to enter a stable regular employment spell in the medium to long run. The identified positive ATTs are larger for participants in programs offering occupation-specific rather than basic skills, training programs in a workplace setting, and in particular workplace training programs that lead to a fixed-term employment contract.

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 Presented in Session 42. Unemployment and Labor Markets