Abstract
This study analyzes the effects of public-sector-sponsored continuous vocational training and retraining in East Germany after unification with West Germany in 1990. It presents econometric estimates of the average gains from training participation in terms of earnings, employment probabilities and career perspects after the completion of training using a matching approach. The data is from the German Socio Economic Panel (GSOEP, 1990-1996). The GSOEP allows the author to observe individual behavior on a monthly, respectively yearly, basis. The results suggest that despite large public expenditures, there are no positive effects in the first years after training.
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