Top PDF Employment and earnings effects of awarding training vouchers in Germany

Employment and earnings effects of awarding training vouchers in Germany

Employment and earnings effects of awarding training vouchers in Germany

1 Introduction Vocational training for the unemployed is an important part of active labor mar- ket policy (ALMP) in many countries. Such programs aim at skill enhancement to improve chances of participants in the labor market. In 2003, Germany moved from a system in which participants are assigned to training programs by case- workers to an allocation system using vouchers. Assigning government-funded programs using vouchers allows recipients to choose among a set of eligible train- ing providers. At the same time the local employment agency specifies the educa- tional objective of the training program, for which the voucher can be redeemed. During the years 2003 and 2004, caseworkers were urged to award a training voucher only when it can be expected that the probability to find a job after training participation is above 70%. Allowing more choice for the participants should result in better choices, thus increasing the effectiveness of training (Pos- ner et al. 2000). However, there is concern that the unemployed may not be sufficiently informed to make good choices in using the training vouchers and that concerns unrelated to the effectiveness of the program may drive the re- demption decision. This paper estimates the employment and earnings effects of a voucher award during the years 2003 and 2004. Using rich administrative data, our estimates control for selection with respect to a large set of observable characteristics.
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Training vouchers, local employment agencies, and policy styles

Training vouchers, local employment agencies, and policy styles

In this paper, we adapt the idea of the policy and imple- mentation styles of political instruments to local employment agencies in the context of a fundamental reform in Germany. To the best of our knowledge, this is the first study that att- empts to describe the variation between the award intensity of one important program of ALMP between local employ- ment agencies. Besides structural differences in the unem- ployment stock and regional conditions, parameters that are likely to incorporate the policy style of employment agen- cies are taken as explanatory information to learn more about the source of the variation in the use of training vouchers. We use data provided by the German Federal Employment Agency, including the precise numbers of awarded training vouchers between 2005 and 2010 at the level of local em- ployment agencies. We combine this data set with variables describing local labor market conditions and regional cha- racteristics to take into account regional effects and effects that stem from the composition of the unemployment stock. In a further step, we explain the inter-regional variation by parameters related to the policy style of employment agen- cies regarding the use of training vouchers. The reform of
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Essays in Personnel Economics – Empirical Analyses on Further Training, Self-Employment Earnings, and Monetary Reference Points

Essays in Personnel Economics – Empirical Analyses on Further Training, Self-Employment Earnings, and Monetary Reference Points

These descriptive results could be confirmed by multivariate estimations which controls for other factors that are supposed to influence earnings and earnings increases as well. A fixed- effects model that controls for unobserved heterogeneity revealed a positive and significant income effect of around 10 percent when switching from wage-employment to self- employment. There are considerable differences when looking at subgroups: Women do not benefit financially from self-employment, whereas the income effect for foreign workers is three times as large as the effect for German workers. East German workers suffer from in- come decreases due to switches into an entrepreneurial occupation. This effect is particularly strong directly after the German reunification. Several explanations for differences between groups were discussed. One main reason might be the distinction between necessity entrepre- neurs (becoming self-employed because of the lack of other job possibilities) and opportunity entrepreneurs (becoming self-employed because of a unique business idea). The data, howev- er, did not allow for distinguishing methodologically between these two kinds of entrepre- neurs. At last, differences in the results between the US and Germany were discussed. First, opportunity costs of becoming self-employed seem to be considerably higher in Germany as workers usually leave at least partly the social security system which is rather extensive com- pared to the US. Moreover, public opinion about entrepreneurship is better in the US. Second, other studies showed that the structure of self-employment is different: Whereas in Germany the majority of the self-employed runs well-established businesses, US entrepreneurs are more often on an early stage. Overall, it was concluded that German workers think more about the decision on whether they should become self-employed which fosters the success of new businesses.
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Competitive Effects of Means-Tested School Vouchers

Competitive Effects of Means-Tested School Vouchers

outcomes in public schools. The Florida Tax Credit Scholarship Program (FTC; formerly called the "Corporate Tax Credit Scholarship Program") offers assistance to students eligible for free or reduced-price lunches at school (that is, those with family incomes below 185 percent of the federal poverty line) to attend private religious or non-religious schools in the state. 2 To qualify for a voucher, students must have spent the entire prior year in a Florida public school (or be entering kindergarten or first grade) in addition to being low-income. Vouchers need not cover all of the costs of attending private schools, and parents are free to send their children to any private school regardless of the share of tuition and fees covered by the voucher. The voucher, however, is quite generous relative to the costs of attending religious private schools; the $3,500 voucher size at the program's introduction 3 was about 90 percent of elementary-grade tuition and fees at a typical Florida religious private school. 4 And the policy change was very large for the target population -- the number of scholarships available was larger than half the size of the low- income population using private schools on the eve of the policy's introduction. For low-income Floridians, the voucher represented a major demand shock for private schooling. Florida's experience with this policy is particularly important because similar policies are being                                                             
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Dynamics of Earnings and Hourly Wages in Germany

Dynamics of Earnings and Hourly Wages in Germany

steepens in the 2000s (see, for example, Gernandt and Pfeiffer, 2007) it is important to identify how much of this increase can be attributed to changes in the permanent component. Our main results are threefold. Firstly, the cross-sectional variance in our sample increases – depending on the specification– by 20 to 50 percent from 1994 to 2006. Consistent with previous research, our sample shows that the increase is much steeper in the 2000s. In fact, most of the increase occurs between 1999 and 2006, while from 1994 to 1999 the cross-sectional variance remains relatively stable. Secondly, the rise in the cross-sectional variance is accompanied by an increase in the fraction of its permanent part. Interestingly, this increase also shows a break around the years 2000/2001. While the fraction of the permanent inequality increases from 1994 to 2000 and peaks in 2001, it then declines from there on by approximately 20 percentage points. This implies that the strong expansion of cross-sectional inequality during the 2000s can be increasingly attributed to transitory inequality. Finally, we find virtually no difference between the evolution of earnings and wage inequality in the period from 1994 to 2006. This is to a large extent a consequence of our focus on full-time employees, but reflects also a relatively compressed distribution of working hours in Germany compared the United States and the UK (Burton and Phipps, 2007).
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The Economics of Education: Vouchers and Peer Group Effects

The Economics of Education: Vouchers and Peer Group Effects

in favour of vouchers. The addition of this effect into the simulations of course increases the policy appeal of vouchers, and, to the extent that competition is felt mainly in the district in which private schools arise, it benefits poor districts relatively more than middle income and wealthy districts. However, I have spent much of my time attempting to persuade you that migrations from middle and high income communities are likely to be quite strong, which implies that even public schools in districts that do not experience the formation of private schools might respond to competitive pressures if they care about losing certain types of desirable students. To what extent such competitive effects from vouchers are likely to arise, and to what extent they are likely to spread throughout the pubic school system as opposed to being concentrated in districts with poor public schools is an open question. As I have mentioned before, however, empirical evidence from existing school competition suggests that we ought to expect at least some effects of this kind. Furthermore, to the extent that teacher unions are responsible for existing inefficiencies in public schools, competition is likely to weaken their power, which may be one of the reasons that public school teacher unions currently compose the major political force against vouchers in the United States.
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Comparing Earnings Management in Germany and the USA

Comparing Earnings Management in Germany and the USA

This study does not examine other factors that probably affect the earnings management intentional behavior. The future research may include other factors having possibilities of affecting earnings management behavior. Because of the small number of sample and limitation of data in this study, thus, the researchers suggest re-examining the issue in the future with larger sample and longer observation periods. The future study is suggested to have comprehensive view the influence of the firm or loose concerning the accounting standards by conducting experimental study. The experimental study is expected to have fervent and forceful impact to limit the influence of other factors affecting earnings management practices. The next study is also suggested to have larger view of whether if there is a trade-off underlies between accrual earnings management and real earnings management.
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Employment and training

Employment and training

is made available to employees on the intranet and in the employee handbook. This policy outlines our aim to ensure that employees enjoy a harmonious work environment that is free from discrimination or harassment and the expectations we have of all our employees. The policy information also provides guidelines to assist employees if they do feel they have been discriminated against or harassed at work. There are a number of communication channels available to employees to raise concern or provide feedback in relation to issues such as harassment and discrimination. These include formal crew and manager communication sessions, performance reviews, our Open door Policy and a Personal Action Letter (PAL). The PAL program provides a pro-forma letter and envelope addressed to the Human Resources department and is a confidential way for employees to seek advice and have problems solved within the organisation. We also recognise that ongoing training for our restaurant management is an effective way to prevent problems at a restaurant level and promote a harmonious workplace. As part of their initial management training, all managers participate in a class entitled ‘People Practices’ which addresses communication, diversity and equal employment. As managers progress their career each subsequent development program includes a component on people management and creating a fair, effective and enjoyable workplace.
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The Employment Effects of Awarding Major U.S. Defense Contracts To U.S.-Based Firms, Compared to Foreign-Based Multinational Firms:

The Employment Effects of Awarding Major U.S. Defense Contracts To U.S.-Based Firms, Compared to Foreign-Based Multinational Firms:

For a number of reasons, defense procurement and aerospace spending can have greater impact on U.S. employment and incomes than some other forms of procurement and spending, but principally because the advanced equipment and supplies purchased by the DOD are mostly made in the United States. 7 The Pentagon requires that the companies producing most of its advanced equipment and supplies operate in facilities that it deems secure and use employees with U.S. security clearances, which usually require U.S. citizenship. 8 Most of these procurements, including subcontracts extending through the supply chain, also are subject to U.S. export controls which restrict access to sensitive facilities, materials, and information included in the United States Munitions List (USML) to “U.S. Persons,” unless they secure prior license or other approval from the State Department. 9 In addition, regulation by the U.S. inter- agency Committee on Foreign Investment in the United States (CFIUS) restricts acquisitions of U.S. aerospace and defense contractors by foreign-based companies. 10 The result is that U.S. domestic companies dominate U.S. aerospace and defense procurements to a greater degree than other areas of procurement or domestic spending.
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Michigan Workers in the Boom Years: Employment and Employment Earnings

Michigan Workers in the Boom Years: Employment and Employment Earnings

Given the current downturn, some may ask how relevant are the data from the boom years. We are quite confident that there is a lot to be learned from the experience of Michigan workers in the nineties. Many of the trends that emerged are structural, not cyclical. The themes that we highlight are likely to be with us for the foreseeable future—in both good and bad economic times. Also, the full employment economy of 2000 provides a unique view of how workers fared at a time when employers were vigorously competing with others for workers—at all skill levels and in all

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Individual, Firm-specific and Regional Effects on Internal Employment Trajectories in Germany. With Special Focus on Education, Further Training and Skill Formation

Individual, Firm-specific and Regional Effects on Internal Employment Trajectories in Germany. With Special Focus on Education, Further Training and Skill Formation

Results for cohorts and previous employment states in Table 1 indicate higher job exit rates for entry-level employees due to Job-Matching-Theory (Jovanovic 1979, 1984); accordingly, misallocations caused by incomplete information occur in case of new hirings that are to be corrected by subsequent labour mobility. Concerning the existence of scarring effects, there is evidence that the length of current employment diminishes the negative effect of lagged un- employment duration dependences. The longer workers with lagged unemployment or non- employment periods are currently employed, the more likely they can reduce scarring effects and stabilize their future employment trajectories. Employees who have entered the firm at most one year ago and remained in the firm have good promotion prospects but also higher risks for decline. It can be assumed that the individual employment history is an important de- terminant of job duration (Boockmann and Steffes 2010; Booth et al. 1999). While Arulampa- lam et al. (2001: 577) noticed, that “unemployment tends to bring future unemployment”, we observe a diminishing effect of duration dependence. Moreover, men, Germans as well as older employees are in more stable employment, whereas only the first two groups of workers have better promotion prospects. To sum up, individuals have different career prospects de- pending on the education degree they especially acquired in the first period of their life course.
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Effects of Germany s Ecological Tax Reforms on the Environment, Employment and Technological Innovation

Effects of Germany s Ecological Tax Reforms on the Environment, Employment and Technological Innovation

the other hand, only 25 percent of the interviewed are willing to believe in the central concept of the ecological tax reform: that the tax burden of the factor “work” is shifted onto energy consumption, and that through this measure jobs are created. This is also due to the public discussion and the news coverage of the issue, in which the burden of the ecological taxes dominate, whereas the cost relief achieved through the sinking of the pension contributions is hardly mentioned. Due to these reasons the German Federal Environmental Agency decided to commission a study which would focus mainly on the reform’s positive effects and try to quantify them as far as possible. The results of the study will be presented in the following.
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Earnings Prospects for People with Migration Background in Germany

Earnings Prospects for People with Migration Background in Germany

Our result differ from findings of, e.g., Chiswick (1978) where immigrants experience rising earnings profiles that exceed comparable native Americans later in the life-cycle. Chiswick argues that this is due to positive selection of the migration force concerning motivation and unobserved skills. Based on his empirical findings for white male immigrants, he formulated the assimilation hypothesis. With respect to our findings, no such assimilation could be established. Does Germany attract a more negatively selected sample of immigrants than the US? The answer should be no, since one has to take into account possible cohort effects (see Borjas (1985)). If composition of cohorts change the finding of assimilation might be a statistical artefact in the US since older cohorts (arriving before the 1950s) were mostly well-educated from Western Europe, whereas in later decades the majority of immigrants arrived developing countries. In contrast, as explained above, immigration to Germany was quite homogeneous with respects to skills of the migrants.
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What Determines Earnings and Employment Risk?

What Determines Earnings and Employment Risk?

There is a growing literature that compares the effect of labor market institutions on the amount of risk that workers face, earnings inequality, and the consequent welfare effects. Bertola and Ichino (1995) argue that labor market institutions are the main determinants of the degree of risk perceived at the individual level. They make a strong case that workers in countries where labor markets are highly flexible (as the United States) perceive higher income risk than workers in countries with more rigid labor market institutions and wages (as Italy). According to Bertola and Ichino, the probability of unemployment depends on employment status: the unemployed are more likely to find a job and the employed are more likely to be laid off in countries with more flexible labor markets. Using simulations Flinn (1998) compares the implications of lifetime welfare inequality of labor market institutions in Italy and the United States. He finds that the American flexible system is characterized by higher cross- sectional dispersion in earnings (and therefore higher income risk) but lower inequality in lifetime welfare, compared to the Italian inflexible system. 15
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Effects of continuous off-the-job training in East Germany after unification

Effects of continuous off-the-job training in East Germany after unification

The results are obtained by using the potential outcome approach to causality - first explicitly suggested by Rubin (1974) - as a general framework to define causal effects of off-the-jo[r]

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Social Statistics  Structure of earnings in industry  Detailed results  1972 Germany 6A

Structure of earnings in industry. 1972-Germany 6A

Häufigkeitsverteilung der A rbeiter und der A ngestellten nach der Höhe des Verdienstes Vergleich nach Geschlecht Distribution de fréquence des ouvriers et des employés suivant le niveau[r]

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Social Statistics  Structure of earnings in industry  Detailed results  1972 Germany 6B

Structure of earnings in industry. 1972-Germany 6B

Répartition des ouvriers, gain horaire brut moyen, coefficients de variation du gain, par sexe, par qualifi­ cation et par classe d'ancienneté dans l'entreprise tous âges réunis Tab.. Ve[r]

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Govt. of Bihar. Deptt. of Labour, Employment & Training. Directorate of Employment & Training. ( Employment Wing )

Govt. of Bihar. Deptt. of Labour, Employment & Training. Directorate of Employment & Training. ( Employment Wing )

ii) To obtain precise occupational information (0.I.) about such aspects as responsibilities and duties of jobs, skill or training requirements, terms & conditions of service, likely dates are expected to come up etc. to examine how far the employers needs could be met from amongst those registered with the Employment Exchanges with a view to cater the man-power needs of trade & industry.

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Earnings, uncertainty, and the self-employment choice

Earnings, uncertainty, and the self-employment choice

The data we use in this paper is an unbalanced panel data set for 1980-1996. The data is a representative 10 per cent sample extract drawn from the Integrated Database for labor market Research (IDA) and the Danish Income Registry (IKR) both maintained by Statistics Denmark. IDA and IKR are both longitudinal data based on register data for all individuals in Denmark. Since data originates from administrative records covering the entire Danish population there is only natural attrition in the data, i.e. birth, death and migration of individuals. The occupational status is observed once a year (the last week of November). We divide the labor market status into three states; self-employed, wage-employed, and unemployed. Since the panel covers more than 15 years, we have the possibility to track individuals over long time periods (before, during and after self- employment) and, thereby, appropriately control for the dynamics of the occupational choice. These high-quality Danish data contains very detailed individual information concerning, e.g., income, wealth, education, labor market status, region of residence, and immigration status. Moreover, the data also includes the same information for cohabitants allowing us to aggregate variables to the household level.
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Inquiry into the Effects of Climate Change on Training and Employment Needs

Inquiry into the Effects of Climate Change on Training and Employment Needs

Innovation commenced research into the regulatory environment in which the construction industry operates in Australia, including sustainability. Through its research and innovation program, Construction Innovation is committed to actively working to ensure a more sustainable built environment. Specifically, Construction Innovation is working to achieve this agenda in four ways: training climate change professionals, industry training and skill development; research and implementation to improve the sustainability of the built environment; and collaborations with like-minded entities. Importantly Construction
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