The Effect of Subsidizing Continuous Training Investments - Evidence from German Establishment Data
24 Pages Posted: 24 Oct 2009
Date Written: October 1, 2009
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 approximately 5 percentage points. Training intensity and the educational structure of participants remained unaffected among those establishments investing in training.
Keywords: Continuous training, employers, training voucher, subsidies, difference-in-difference
JEL Classification: J24, H25
Suggested Citation: Suggested Citation
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