Arbeitspapier

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

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.

Language
Englisch

Bibliographic citation
Series: ETLA Working Papers ; No. 56

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

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

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Kauhanen, Antti
  • The Research Institute of the Finnish Economy (ETLA)

Time of origin

  • 2018

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