"The Double Dividend of Training" - Labor Market Effects of Work-Related Continuous Education in Switzerland

24 Pages Posted: 8 Oct 2022

See all articles by Stefan Denzler

Stefan Denzler

Swiss Coordination Centre for Research in Education

Jens Ruhose

Leibniz Universität Hannover - Faculty of Economics and Management

Stefan C. Wolter

Swiss Coordination Centre for Research in Education (SKBF); University of Bern - Department of Economics

Abstract

This paper presents the first longitudinal estimates of the effect of work-related training on labor market outcomes in Switzerland. Using a novel dataset that links official census data on adult education to longitudinal register data on labor market outcomes, we apply a regression-adjusted matched difference-in-differences approach with entropy balancing to account for selection bias and sorting on gains. We find that training participation increases yearly earnings and reduces the risk of unemployment two years after the treatment. However, the effects are heterogeneous as to gender, age, education, and regional labor market context. The gains are highest for middle-aged men with formal vocational education working in either depressed or booming labor markets.

Keywords: continuous education, wages, unemployment, entropy balancing, Switzerland

JEL Classification: I21, I26, J24, M53

Suggested Citation

Denzler, Stefan and Ruhose, Jens and Wolter, Stefan C., "The Double Dividend of Training" - Labor Market Effects of Work-Related Continuous Education in Switzerland. IZA Discussion Paper No. 15619, Available at SSRN: https://ssrn.com/abstract=4241598 or http://dx.doi.org/10.2139/ssrn.4241598

Stefan Denzler (Contact Author)

Swiss Coordination Centre for Research in Education ( email )

Francke-Gut
Entfelderstrasse 61
CH-5000 Aarau
United States

Jens Ruhose

Leibniz Universität Hannover - Faculty of Economics and Management ( email )

Koenigsworther Platz 1
Hannover, 30167
Germany

Stefan C. Wolter

Swiss Coordination Centre for Research in Education (SKBF) ( email )

CH - 5000 Aarau
Switzerland
+41 62 835 23 90 (Phone)
+41 62 835 23 99 (Fax)

HOME PAGE: http://www.skbf-csre.ch

University of Bern - Department of Economics ( email )

Gesellschaftstrasse 49
Bern, CH-3012
Switzerland
+41 31 631 40 95 (Phone)
+41 31 631 39 92 (Fax)

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