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 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

Osa tutkimuksia
Polkuja työhön: ammattirakenteen muutos haastaa osaamisen
Osa ohjelmia
Työmarkkinat ja koulutus
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 (Pdf)
JEL
I22, J24, H43, C21, M53
Sivuja
54
Kieli
Englanti