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Training in Flanders ( Belgium )

Training in Flanders ( Belgium ). Evaluation of an on – the-job-training programme for the unempoyed Joost Bollens, K.U.Leuven. Training for the unemployed. Important ingredient of ALMP’s # Participants % of ALMP budget Intuitively , that seems right

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Training in Flanders ( Belgium )

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  1. Training in Flanders (Belgium) Evaluation of an on–the-job-trainingprogrammefor the unempoyedJoost Bollens, K.U.Leuven

  2. Training for the unemployed • Important ingredient of ALMP’s • # Participants • % of ALMP budget • Intuitively, thatseemsright • However : evaluationresults mixed & ratherpessimistic

  3. Effectiveness of training • Often: net effectiveness absent, or even negative • Costeffectiveness • Locking in effects • Possibly offset by “better” or more enduring jobs afterwards? • Short versus long term effects

  4. Effectiveness of training • Be careful: what is “training”? • Black box • What subject (and demandorientedornot?) • For whom? • Bywhom ? (experience, scale, …) • Type ? (classroom, on-the-job,…) • Intensity? Duration? ?

  5. Effectiveness of training • Black box, contnd. • Timing of intervention ? • CombinedwithotherALMP’s? Order? • Business cycleconditions? • Instrument fortightlabourmarket: avoid bottlenecks ? • But : locking in lessproblematicif high U?

  6. ?

  7. IBO (“Individuele beroepsopleiding in de onderneming”) • Individualvocational training, on-the -job • Initiative : employer • Whennoalternative • For unemployed • 1 to 6 months • During training : UB + additional bonus • Afterwardsrecruitment • Possibilityto present theirowncandidate

  8. Number of participants

  9. Highlyselective… • Notmuchwomen • Migrantsunderrepresented • More than 50% short term unemployed (≤ 3 m) • 55% youngerthan 25 • Relativelylesslowskilled • Selectivityremains over entireperiod

  10. Effectiveness • Two kinds of information • Unemployment register (entireperiod): eitherunemployed, ornot (monthly) • From 2003 : workingornotworking (monthly)

  11. Work

  12. “First” situation

  13. Entireperiod

  14. Net effectiveness • Outcomeverypositive • Duetoprogramme, orduetoselectivity? • Whatwould have been outcome in the absence of the programme? • Composecomparisongroup via matchingtechnique (Propensity Score Matching)

  15. Matching • Basicidea: findforevery participant, a non-participant withcomparablecharacteristics • Matchingonsex, age, unemploymentduration, educationalattainment, province, month and year of terminating the training • Selectiononobservables, notonunobservables

  16. Net effect • Here : unemployedornotunemployed (↔ workingornotworking) • From 2000 onward (↔ 2003) • In graph : % notunemployed • Starting in firstmonthafterterminating the training • Until 12.2008

  17. % notunemployed

  18. Lowskilled & LTU

  19. Business cycle : gross effect

  20. Business cycle : net effect

  21. Conclusion • Twoobjectives • As an answertoskillshortages, avoiding bottlenecks • Potentially high benefits • Butdeadweightpossible : monitor entrance • As activatingmeasure • Who enters, clearlybenefits • Butprobalility of entering unequallydivided • Howtochangethis?

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