The Impact of Government-Sponsored Training Programs
on the Labor Market Transitions of Disadvantaged Men
Guy Lacroix Laval University
The analysis focuses on an examination of the impact of government-sponsored
training programs aimed at disadvantaged male youths on their labour market
transitions. The richness of the data at our disposal allows us to recreate
very detailed individual histories over a relatively long period. As many
as seven distinct states on the labour are be identified in the data.
We use a continuous time duration model to estimate the density of
duration times in these seven states, controlling for the endogeneity of
an individual's training status. We investigate the sensitivity of the
parameter estimates by comparing a typical nonparametric specification
with a series of parametric two-factor loading models, as well as a parametric
three-factor loading model.
Our results show that young, poorly educated males who participate
in welfare training programs do far worse on the labour market than those
who do not participate. Participation in the Job Re-Entry Program, a distinct
welfare training program, yields better results in terms of employment.
Our estimates clearly indicate that participants in JRP and those in welfare
training programs are distinct groups.
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