Measuring the Effect of Subsidized Training Programs on Movements In and Out of Employment

Abstract

The authors estimate the effect of training on the probability of em ployment for participants in the 1976 Comprehensive Employment and Tr aining Act program. Their analysis uses Social Security earnings data from 1970 to 1979 for trainees and a comparison group. In addition t o simple pre- versus post-training comparisons of employment probabil ities for trainees and controls, the authors present logistic regress ion models with fixed and random effects for individual heterogeneity . They conclude that program participation increased the probability of employment by 2 to 5 percentage points, with larger effects for cl assroom versus nonclassroom programs. Copyright 1988 by The Econometric Society.

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