Time Off to Upgrade Skills: The Labour Market Effects of a Large-Scale Educational Leave Programme

Benjamin Bittschi, Rainer Eppel, Ulrike Famira-Mühlberger, Helmut Mahringer and Christine Zulehner
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Rainer Eppel: WIFO
Ulrike Famira-Mühlberger: WIFO
Helmut Mahringer: WIFO

No 712, WIFO Working Papers from WIFO

Abstract: This paper combines a counterfactual impact analysis using rich administrative data with a participant survey to assess the long-term labour market effects of Austria's large-scale educational leave programme. The scheme allows eligible employees to take full- or part-time leave for further education, supported by income-compensating benefits. We find that participation substantially increases monthly earnings but does not improve employment probability. Full-time leave reduces employment in the short term and modestly in the long term, offsetting wage gains and resulting in no increase in cumulative earnings. Part-time leave yields even larger monthly wage increases and clear cumulative earnings gains, with no significant employment effects.

Keywords: Educational leave; continuing education; labour-market outcomes (search for similar items in EconPapers)
Pages: 45 pages
Date: 2025-09-24
New Economics Papers: this item is included in nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2025:i:712

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