The Effects of an Education-Leave Program on Educational Attainment and Labor-Market Outcomes

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 while being compensated for a substantial part of their forgone earnings. 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. Treatment effects on pseudo-outcomes are small and with one exception not statistically significant, which supports the credibility of the identification strategy. Sensitivity analyses show that unobserved variables should have a fairly large effect on treatment assignment to change the results.

Julkaisun tietoja

Sarja
ETLA Working Papers 56
Päiväys
14.02.2018
Keywords
Adult education, education leave, linked employer‐employee data, program evaluation
ISSN
2323-2420, 2323-2439
Jel
I22, J24, H43, C21, M53
Sivuja
54
Hinta
15 €
Painoversion saatavuus
Saatavilla
Kieli
englanti