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

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ETLA Working Papers ; No. 56

Classification and Topics

• Classification: Wirtschaft ; Educational Finance; Financial Aid ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Project Evaluation; Social Discount Rate ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Personnel Economics: Training
• Subject: Adult education ; Education leave ; Linked employer-employee data ; Program evaluation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kauhanen, Antti
• Event: Veröffentlichung
• (who): The Research Institute of the Finnish Economy (ETLA)
• (where): Helsinki
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/201271
• Last update: 10.03.2025, 11:42 AM CET