An Evaluation of Public-Sector-Sponsored Continuous Vocational Training Programs in East Germany

This study analyses the effects of public-sector-sponsored continuous vocational training and retraining in East Germany after unification with West Germany in 1990. It presents econometric estimates of the average gains from training participation in terms of employment probabilities, earnings, and career prospects after the completion of training using a matching approach. The data is from the German Socio-Economic Panel (GSOEP, 1990-1996). The GSOEP allows the researcher to observe individual behavior on a monthly or on a yearly basis. The results suggest that despite large public expenditures there are no positive effects in the first years after training.