One Dummy Won't Get it: The Impact of Training Programme Type and Duration on the Employment Chances of the Unemployed in Ireland

September 26, 2011
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In the extensive literature on the employment impact of public-sponsored training programmes for the unemployed, insufficient attention has been paid to the differential impact of different types of programmes and training duration. This paper uses a unique dataset, which tracks the labour market position of a cohort of unemployment benefit claimants for almost two years, to evaluate the impact of a range of government-sponsored training courses in Ireland. Overall, we found that those who participated in training were less likely to be unemployed at the end of the two-year study period. However, the average effect of training varied by the type and duration of training received. In general, we found strong positive effects for job-search skills training and medium-to high-level skills courses, a more modest positive effect for general vocational skills programmes (which are not strongly linked to demand in the labour market) and less consistent effects with respect to low-level skills training. We also found that training episodes with lower duration had a more positive impact, with the exception of high-level skills training programmes where longer training durations appear more effective. The results suggest that, in the Irish context, there are potentially substantial benefits to re-orientating unemployment training provision away from standard classroom vocational training towards the medium to high-level skill end of the market and demonstrate that, in most cases, training durations can be reduced without lowering the effectiveness of the interventions.