Evaluating Retraining Programs in OECD Countries: Lessons Learned.

Are retraining programs for the unemployed more effective than job search assistance? Governments of the member countries of the Organisation for Economic Co-operation and Development have considerable experience with retraining programs in a variety of industrial settings. Evaluations of these programs show that the results are disappointing, however. This article discusses the factors associated with retraining programs for two types of workers: those laid off en masse and the long-term unemployed. Evaluations indicate poor results for both groups: retraining programs are generally no more effective than job search assistance in increasing either reemployment probabilities or postintervention earnings, and they are between two and four times more expensive than job search assistance. Copyright 1998 by Oxford University Press.