The long-term earnings consequences of general vs. specific training of the unemployed

Anders Stenberg and Olle Westerlund ()

IZA Journal of European Labor Studies, 2015, vol. 4, issue 1, 1-26

Abstract: Training programs for the unemployed typically involve training specific skills in demand amongst employers. In 1997, Swedish unemployed could also choose general schooling at the upper secondary level. This offers a unique opportunity to assess the theoretically ambiguous long-term relative earnings of general vs. specific training for unemployed. Analyzing detailed administrative data 1990–2010, we find 1) that specific training is associated with higher earnings in the short run, 2) that earnings converge 5–7 years post program and 3) that individuals act on their comparative advantages. When we extrapolate our estimates to life-time earnings, there is overall a relative advantage of specific training. However, for females with limited prior education, we find a relative life-time earnings advantage of general training. JEL-codes: I21, J62, J68 Copyright Stenberg and Westerlund. 2015

Keywords: Active labor market programs; Adult education; Vocational training; Earnings (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (17)

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Working Paper: The long-term earnings consequences of general vs. specific training of the unemployed (2014)
Working Paper: The Long-term Earnings Consequences of General vs. Specific Training of the Unemployed (2014)
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DOI: 10.1186/s40174-015-0047-9

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