Effects of Public Job Training Programmes on the Employment Outcome of Displaced Workers: Results of a Matching Analysis, a Fixed Effects Model and an Instrumental Variable Approach Using Korean Data

Abstract

This study employs the matching method, the fixed effects model and the instrumental variable (IV) approach to estimate the employment effect of training programmes on displaced workers in Korea. The results of the matching and logit analyses suggest a positive training effect on employment. However, the fixed effects model showed a substantial reduction in the estimated training effect and the IV approach showed no training effect. This provides clear evidence of positive selection into training. The results of the IV approach suggest that training favoured male and educated workers, whereas female, less educated and older workers were disadvantaged by training programmes.

Propensity score analysis: an alternative statistical approach for HRD researchers

“…A secondary search for published articles was also conducted through Google Scholar ® using the date range of 2005-2015 and search keys "HRD" and "Propensity Score". This broader search also returned scant relevant articles related to PSA with two overlapping the within-journal search results (Lane and Gibbs, 2015;Reio et al, 2015;Choi and Kim, 2012). These findings may demonstrate a need for greater exposure and understanding of PSA and its potential benefits when working with intact groups in the HRD literature.…”

The effects and challenges of vocational training in Korea

“…Yoo and Kang (2010) reported that jobrelated vocational training increases a worker's earnings by 2.6~9.0% on average. The effectiveness of public training programs was also examined in Lee and Lee (2005) and Choi and Kim (2012). Choi and Kim (2012) found positive employment effects of public training programs, in general, but they also pointed out that training has negative effects on the disadvantaged including female, less educated, and older workers.…”

“…The effectiveness of public training programs was also examined in Lee and Lee (2005) and Choi and Kim (2012). Choi and Kim (2012) found positive employment effects of public training programs, in general, but they also pointed out that training has negative effects on the disadvantaged including female, less educated, and older workers. Kim and Park (2015) reported that vocational training reduces the duration of unemployment but did not find supportive evidence that the training increases the individual's employment probability.…”