The Limits of Mathematics and NP Estimation in ... - Chichilnisky

The Impact of Government-SponsoredTraining Programs on the Labor Market Transitions of Disadvantaged MenThe Impact of Government-Sponsored Training Programs on the Labor Market Transitions of Disadvantaged Men 2773Welfare Welf. Tr. JRP UI UI Tr. Employ. OLFTWO-FACTOR LOADING MODELWEIBULL DISTRIBUTION -NO DUMMY INDICATORSWelfare 1.000 -0.343 0.993 0.987 0.237 0.988 -0.947(0.266) (0.004) (0.004) (2.413) (0.003) (0.012)Wel. Tr. 1.000 -0.228 -0.189 0.832 -0.195 0.627(0.278) (0.281) (1.390) (0.280) (0.218)JRP 1.000 0.999 0.351 0.999 -0.901(0.001) (2.325) (0.001) (0.026)U.I. 1.000 0.388 1.000 -0.883(2.288) (0.027)UI Tr. 1.000 0.383 0.089(2.294) (2.475)Emplo. 1.000 -0.886(0.026)TWO-FACTOR LOADING MODELWEIBULL DISTRIBUTION -WITH DUMMY INDICATORSWelfare 1.000 -0.181 0.993 0.987 -0.737 0.987 -0.945(0.337) (0.004) (0.004) (0.943) (0.003) (0.013)Wel. Tr. 1.000 -0.061 -0.018 0.798 -0.021 0.494(0.341) (0.344) (0.872) (0.344) (0.296)JRP 1.000 0.999 -0.650 0.999 -0.898(0.002) (1.062) (0.001) (0.027)U.I. 1.000 -0.617 1.000 -0.878(1.098) (0.000) (0.028)UI Tr. 1.000 -0.619 0.918(1.096) (0.552)Emplo. 1.000 -0.880(0.027)Table 6. (Continued)Correlations Between Heterogeneity Variables(Standard Errors in Parentheses)(7)–(9), respectively. Hence, the first section has the same interpretation as the correlations ofthe previous panels. The correlation coefficients reported in this section differ considerablyfrom the previous ones. According to the estimates, it now appears that there is considerableselectivity into welfare training as well as in JRP. Indeed, those who are more likely toparticipate in the former are also more likely to train under JRP and to find employment.On the other hand, higher transition rates into JRP or welfare training is now associated withlower transition rates into UI and UI training. This is in stark contrast with the previousresults. Other correlation coefficients are relatively similar to the previous ones.The second section of the panel reports the correlation coefficients with respect to the originstates. Large heterogeneity values in the origin state translate into short spell durations.Consequently, the correlations reflect the frequency with which individuals transit across thevarious states. The estimates show that individuals who are more likely to have long welfarespells are also likely to have short employment spells. The same holds with respect to welfaretraining and employment, as well as JRP and employment. Those who are more likely to haveshort unemployment spells are more likely to have long JRP, welfare training or UI trainingspells.