Assessing the impact of training on unemployment duration using hazard models with instrumental variables

The goal of the study is to prove the effectiveness of trainingprograms directed to the unemployed on the local labor market in Poland. Weestimate a semiparametric hazard model to assess the impact of training onthe individual’s unemployment duration. To resolve the potential sampleselection problem, the participation in a training program is instrumentedusing a probit model. The main question of this paper is whether the trainingsignificantly raises the transition rate from the unemployment into theemployment state