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This study aims to evaluate the effects of further training programs on the individual unemployment duration of different groups of persons representing individual characteristics and some aspects of the economic environment in the region of Saxony in Germany between 1990 and 2001. The methodological approach is different from that used in other studies in three ways: it follows the concept of perforated unemployment, i.e. the unemployment spell of participants includes the further training episode; it uses the pre-history of the employment status as an indicator of the employment probability before the start of the program in order to eliminate Ashenfelter's Dip; and it employs a matching algorithm which provides an optimal full assignment. Sections two and three provide a brief overview of the legal basis of further training programs in Germany and the development of participation in East Germany and Saxony as well as the description of the data. Section four theoretically describes the fundamental problem of microeconomic evaluation and lists assumptions on the matching process and the resulting requirements for the data. This is followed by an explanation of the selection of variables and spells, the matching approach and the model of duration analysis used for the empirical study. The results of the evaluation reveal a negative effect of participation in further training programs.

Selected papers from this conference are indexed at TD/TNC 87.464 and TD/TNC 87.465. Show less