Evaluation of Language Training Programs in Luxembourg using Principal Stratification

Michela Bia, Alfonso Flores-Lagunes, Andrea Mercatanti

Résultats de recherche: Contribution à un journalArticleRevue par des pairs

Résumé

In a world increasingly globalized, multiple language skills can create more employment opportunities. Several countries include language training programs in active labor market programs for the unemployed. We analyze the effects of a language training program on the re-employment probability and hourly wages simultaneously, using high-quality administrative data from Luxembourg. We address selection into training with an unconfoundedness assumption and account for the complication that wages are “truncated” by unemployment by adopting a principal stratification framework. Estimation is undertaken with a mixture model likelihood-based approach. To improve inference, we use the individual’s hours worked as a secondary outcome and a stochastic dominance assumption. These two features considerably ameliorate the multimodality problem commonly encountered in mixture models. We also conduct a sensitivity analysis to assess the unconfoundedness assumption. Our results suggest a positive effect (of up to 12.7 percent) of the language training programs on the re-employment probability, but no effects on wages for those who are observed employed regardless of training participation.
langue originaleAnglais
Pages (de - à)1-44
journalObservational Studies
Volume8
Numéro de publication1
Les DOIs
étatPublié - 2022

Contient cette citation