Munich Personal RePEc Archive

Workplace Training Programs: Instruments for Human Capital Improvements or Screening Devices?

Brunetti, Irene and Corsini, Lorenzo (2014): Workplace Training Programs: Instruments for Human Capital Improvements or Screening Devices?

[img]
Preview
PDF
MPRA_paper_55943.pdf

Download (135kB) | Preview

Abstract

In this paper we analyse the effect of an Italian training program on the re-employment probability of young unemployed workers. The program consists solely of workplace training and is coordinated by employment centre, but it is fully implemented by firms. We develop a discrete duration analysis and our results suggest that workplace training improves only the immediate re-employability of trained workers, failing to bestow them with durable human capital improvements. These results appear to be robust to spurious duration dependence and to self-selection. Our analysis focuses on the role of unobserved heterogeneity and, accounting for it, we show that the training implementation is useful to sort “good” trainees from “bad” ones: therefore we suggest that firms are exploiting training as a screening device.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.