The Effects of Public Sector Sponsored Training on Individual Employment Performance in East Germany

This study analyses the effects of public sector sponsored vocational training on individual unemployment and employment duration in East Germany. The data is taken from the German Socio-Economic Panel (GSOEP). The empirical analysis is limited to training measures that took place between July 1990 and June 1993. To resolve the intriguing sample selection problem, i.e. to find an adequate control group for the group of trainees, we employ matching methods. The training effect is be estimated by using a discrete time hazard rate model. In the empirical analysis no evidence can be found to show that participation in public vocational training significantly decreases unemployment duration or increases employment duration.