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

Antti Kauhanen ()

No 56, ETLA Working Papers from The Research Institute of the Finnish Economy

Abstract: 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.

Keywords: Adult education; Education leave; Linked employer-employee data; Program evaluation (search for similar items in EconPapers)
JEL-codes: C21 H43 I22 J24 M53 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2018-02-14
New Economics Papers: this item is included in nep-edu and nep-lma
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