A Service of zbw Leibniz-Informationszentrum Wirtschaft Leibniz Information Centre for Economics Vocational Training of Unemployed Workers in Belgium Vocational Training of Unemployed Workers in Belgium

Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent, nonprofit limited liability company (Gesellschaft mit beschränkter Haftung) supported by the Deutsche Post AG. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. The current research program deals with (1) mobility and flexibility of labor, (2) internationalization of labor markets, (3) welfare state and labor market, (4) labor markets in transition countries, (5) the future of labor, (6) evaluation of labor market policies and projects and (7) general labor economics. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available on the IZA website (www.iza.org) or directly from the author. ABSTRACT Vocational Training of Unemployed Workers in Belgium * In this paper we estimate, for the 1989-93 period in Belgium, the effect of vocational classroom training on the rate of transition from unemployment. We propose a "control function" estimator accounting for variable treatment effects. In the absence of interaction effects between explanatory variables this estimator identifies treatment effects free from selection bias. A natural experiment induces exogenous sub-regional variation in the training supply. This provides over-identifying restrictions that cannot be rejected. During participation, the transition rate decreases by 23% to 30%. Afterwards it increases by 47% to 73%. Making training available for a broader population would, however, reduce the effectiveness of the programme. JEL Classification: C41, J24, J64, J6