Article 2010

The effect of subsidizing continuous training investments - Evidence from German establishment data

GK
Görlitz, Katja
Labour Economics
Journal · Vol. 17 · Issue 5 · pp. 789-798
Abstract

This paper evaluates the impact of a training voucher program on establishments' investments in further training. The voucher program that was implemented in the German federal state of North Rhine-Westphalia increased training incentives for employees in small and medium-sized establishments by reducing training costs by 50%. The estimation is based on a quasi-experimental research design exploiting variation across time, regions and establishment size. Using establishment data, I find that the share of establishments that invest in training increased by 4-6 percentage points. Training intensity and the educational structure of participants remained unaffected among those establishments investing in training. © 2010 Elsevier B.V.

Keywords

Author Keywords

Employers Continuous training subsidies Difference-in-difference estimator Training voucher

Index Keywords

Author Affiliations
Rheinisch-Westfaelisches Institut fuer Wirtschaftsforschung Essen, Essen, Nordrhein-Westfalen, Germany
Funding & Acknowledgements
Leibniz-Gemeinschaft
The author is grateful to Thomas K. Bauer, Michael Fertig, Christoph M. Schmidt, Marcus Tamm and two anonymous referees for helpful comments and suggestions. Financial support from the “ Leibniz Gemeinschaft ” is gratefully acknowledged. All remaining errors are my own.
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