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Are training subsidies for firms effective? The Michigan experience

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Author Info
Harry J. Holzer
Richard Block
Marcus Cheatham
Jack H. Knott

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Abstract

This paper explores the effects of a state-financed training grant program for manufacturing firms in Michigan. Using a three-year panel of data from a unique survey of firms that applied for these grants, the authors estimate the effects of receipt of a grant on total hours of training in the firm and the product scrap rate. They find that receipt of these grants is associated with a large and significant, though one-time, increase in training hours, and with a more lasting reduction in scrap rates. (Abstract courtesy JSTOR.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 46 (1993)
Issue (Month): 4 (July)
Pages: 625-636
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ilr:articl:v:46:y:1993:i:4:p:625-636

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  1. Edwin Leuven & Hessel Oosterbeek, 2002. "Evaluating the effect of tax deductions on training," Labor and Demography 0205001, EconWPA. [Downloadable!]
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  2. Timothy J. Bartik, 1993. "Federal Policy Towards State and Local Economic Development in the 1990s," Staff Working Papers 93-17, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  3. Holger Görg & Eric Strobl, 2005. "Do Government Subsidies Stimulate Training Expenditure? Microeconometric Evidence from Plant Level Data," IZA Discussion Papers 1606, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Jozef Konings & Stijn Vanormelingen, 2009. "The Impact of Training on Productivity and Wages: Firm Level Evidence," LICOS Discussion Papers 24409, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  5. William Collier & Francis Green & Young-Bae Kim & John Peirson, 2008. "Education, Training and Economic Performance: Evidence from Establishment Survival Data," Studies in Economics 0822, Department of Economics, University of Kent. [Downloadable!]
  6. Alan Barrett & Philip J. O'Connell, 1997. "Does Training Generally Work? Measuring the Returns to In-Company Training," Papers WP087, Economic and Social Research Institute (ESRI). [Downloadable!]
  7. Timothy J. Bartik, 1994. "What Should the Federal Government Be Doing About Urban Economic Development?," Staff Working Papers 94-25, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  8. Addison, John T. & Belfield, Clive R., 2008. "Unions, Training, and Firm Performance," IZA Discussion Papers 3294, Institute for the Study of Labor (IZA). [Downloadable!]
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  9. Addison, John T. & Belfield, Clive R., 2004. "Unions, Training, and Firm Performance: Evidence from the British Workplace Employee Relations Survey," IZA Discussion Papers 1264, Institute for the Study of Labor (IZA). [Downloadable!]
  10. H. J. Holzer, . "Employer hiring decisions and antidiscrimination policy," Institute for Research on Poverty Discussion Papers 1085-96, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  11. Gérard Ballot & Fathi Fakhfakh & Erol Taymaz, 2002. "Who benefits from training and R&D: The firm or the workers? A study on panels of French and Swedish firms," ERC Working Papers 0201, ERC - Economic Research Center, Middle East Technical University, revised Jan 2002. [Downloadable!]
  12. Alan Krueger & Cecilia Rouse, 1994. "New Evidence on Workplace Education," Working Papers 708, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  13. Yanick Labrie & Claude Montmarquette, 2005. "La formation qualifiante et transférable en milieu de travail," CIRANO Project Reports 2005rp-04, CIRANO. [Downloadable!]
  14. Timothy J. Bartik & Richard D. Bingham, 1995. "Can Economic Development Programs Be Evaluated?," Staff Working Papers 95-29, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  15. Barrett, Alan & O'Connell, Philip J., 1999. "Does Training Generally Work? The Returns to In-Company Training," IZA Discussion Papers 51, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  16. Timothy J. Bartik, 2004. "Increasing the Economic Development Benefits of Higher Education in Michigan," Staff Working Papers 04-106, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
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