This study analyzes the effects of publicly funded continuous vocational tr
aining and retraining programs in the former East Germany after unification
with West Germany in 1990. It presents econometric estimates of the averag
e gains from training in terms of employment probabilities, earnings, and c
areer prospects after the completion of training using a matching approach.
The data are from the German Socio-Economic Panel (GSOEP), The GSOEP allow
s the researcher to observe individual behavior on a monthly or yearly basi
s. The results suggest that despite large public expenditures, there are no
positive effects in the first years after training.