Scandinavian Working Papers in Economics

Oslo University, Department of Economics

No 15/2002: Do individual programme effects exceed the costs? Norwegian evidence on long run effects of labour market training

Oddbjørn Raaum (), Hege Torp () and Tao Zhang ()
Additional contact information
Oddbjørn Raaum: Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, N-0349 Oslo, Norway
Hege Torp: Institute for Social Research, Postal: Postbox 3233 Elisenberg, N-0208 Oslo, Norway
Tao Zhang: Ragnar Frisch Centre for Economic Research, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway

Abstract: Individual long run effects of a labour market training programme targeted at unemployed adults are evaluated by comparing mean post-training earnings for matched samples of participants and non-participants. Average training effects on the trained are positive and persistent over the posttraining period of 5 years. Participants without recent work experience, prior to the training, gain less. For participants with recent work experience the present value of the 5 years accumulated earnings effect exceeds the direct costs of the training.

Keywords: Training unemployed; causal effects; matching estimators; accumulated long run effects

JEL-codes: C14; J64; J68

60 pages, June 17, 2003

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