The Effects of an Education-leave Program on Educational Attainment and Labor-market Outcomes

Abstract

I study the effect of an education-leave subsidy for the employed on labor-market outcomes and educational attainment using Finnish administrative linked employer-employee panel data and matching methods. The adult education allowance is available to employees with at least eight years of work experience and allows them to take a leave for 2–18 months to participate in an education program. I find large positive treatment effects on educational attainment and changing occupation. The treatment effects on earnings and employment are negative during the lock-in period and close to zero afterward. The effects are more positive for the less educated.

Publication info

Results of research
Occupational restructuring challenges competencies
Research group
Labour market and education
Date
31.05.2021
Keywords
Adult education, Education leave, Linked employer-employee data, Program evaluation
JEL
I22, J24, H43, C21, M5
Publisher / series
Education Economics, Vol. 29, Issue 3 (2021).
Pages
19
Language
English
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