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The impact of training vouchers on low-skilled workers

Listed author(s):
  • Hidalgo, Diana
  • Oosterbeek, Hessel
  • Webbink, Dinand

This paper reports about a randomized experiment in which training vouchers of €1000 were given to low-skilled workers. The vouchers increase training participation by almost 20 percentage points in two years, relative to a base rate of 0.45. This increased participation comes at a substantial deadweight loss of almost 60%. Consistent with predictions from human capital theory, we find that vouchers cause a shift towards more general forms of training. We do not find any significant impact of the program on monthly wages or on job mobility. The program does, however, have a significant impact on future training plans. Compared to always-takers, new trainees are more often male, more risk averse, work shorter hours and are less likely to have participated in training prior to treatment. Compared to never-takers, they are more often female, work longer hours and have a somewhat lower formal education level.

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File URL: http://www.sciencedirect.com/science/article/pii/S0927537114001341
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Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 31 (2014)
Issue (Month): C ()
Pages: 117-128

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Handle: RePEc:eee:labeco:v:31:y:2014:i:c:p:117-128
DOI: 10.1016/j.labeco.2014.09.002
Contact details of provider: Web page: http://www.elsevier.com/locate/labeco

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