Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/201271
Authors: 
Kauhanen, Antti
Year of Publication: 
2018
Series/Report no.: 
ETLA Working Papers 56
Abstract: 
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.
Subjects: 
Adult education
Education leave
Linked employer-employee data
Program evaluation
JEL: 
I22
J24
H43
C21
M53
Document Type: 
Working Paper

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