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Skill Formation among Vocational Rehabilitation Clients – Public Policy vs Private Incentives

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  • Aakvik, Arild

    ()
    (University of Bergen, Department of Economics)

  • Kjerstad, Egil

    ()
    (Foundation for Research in Economics and Business Administration (SNF) and HEB)

Abstract

In this paper we analyse individual vocational rehabilitation clients’ decisions to enter active training or not. Although the Government pays the direct costs of training, the composition of the total costs of training may be decisive for individual choices. Based on labour market theory, we relate background characteristics of the clients to monetary opportunity costs and non-monetary costs of training, arguing that training choices are a consequence of differences in costs of training. We use a ten percent sample of participants in educational programs, work related training and non-participants who entered the Norwegian vocational rehabilitation sector in the period from 1989 to 1993, a total of 6653 persons. We find that the background characteristics of persons investing in educational training differ along several dimensions compared both to persons attending work related training and to clients not participating in training at all.

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Bibliographic Info

Paper provided by University of Bergen, Department of Economics in its series Working Papers in Economics with number 01/02.

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Length: 31 pages
Date of creation: 14 Jan 2002
Date of revision:
Handle: RePEc:hhs:bergec:2002_001

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Postal: Institutt for økonomi, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway
Phone: (+47)55589200
Fax: (+47)55589210
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Web page: http://www.uib.no/econ/en
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Related research

Keywords: Public policy; private incentives; costs of training; educational training; work related training; vocational rehabilitation;

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