Earnings and Employment Effects of Continuous Gff-the-Job Training in East Germany After Unification

Abstract

Abstract The effects of continuous off-the-job training (OFT) for East Germans after unification are analyzed in terms of their earnings and employment probabilities. Using the potential outcome approach to causality as general framework, different matching procedures are suggested for the estimation. They allow for permanent and transitory shocks that influence OFT participation and labor-market outcomes. The matching procedures also take account of individually different starting dates. The data are taken from the German Socio-Economic Panel (GSOEP, 1990–1994). This dataset is very informative with respect to factors influencing the participation in training. The results show no positive effects of training. KEY WORDS: Causal analysisEast German labor marketEvaluation of training programsMatching on the propensity scorePanel data