ECON 306 Lecture Notes - Lecture 12: W. M. Keck Observatory, Capital Formation, Visible Minority
24 May 2017
School
Department
Course
Professor
Document Summary
What if a training program for social assistance recipients found a much better proportion of trainees found work than in a control group: No the answer is that we need more information. The target group displaces the target group (eligible people): this is aggravated by self- selection and creaming. This is active and passive displacement at the same time. Passive displacement: when the job is filled by a treated person when it could have been filled by the control group. The treatment group is doing better just because of passive displacement. Could deadweight displacement be eliminated if the subsidy could be restricted to the new jobs created by the program? (you need to read the notes of mycourses to find out why it"s not simple to answer that question) Unobservable benefits of training programs may be in the future: (personal prof view)
