MANPOWER TRAINING-PROGRAMS AND EMPLOYMENT STABILITY

We evaluate Austrian labour market policy focusing on its possible eff ects upon recurrent unemployment. Without properly considering the sel ection processes for public training programmes, misleading results em erge. Taking the participation decision into account in a bivariate pr obit setting, Austrian manpower training programmes turn out to be a s ort of 'catching up': (i) disadvantaged and less motivated job-seekers are given priority in enrolment into training programmes, and (ii) pa rticipation in such courses improves employment stability significantl y.