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Comprehensive education or vocational training for the unemployed?

Author

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  • Anders Stenberg

Abstract

Purpose - The purpose of this paper is to evaluate the effects of comprehensive education as compared with vocational training by using Swedish data on a large sample of unemployed individuals aged 25 to 55. Design/methodology/approach - The Adult Education Initiative (AEI) in Sweden was introduced in the autumn of 1997 and generated a massive expansion of subsidized adult comprehensive education. Participants in the vocational part of Labour Market Training (LMT) are used as a comparison group. The relative program effects are obtained by way of OLS fixed effects estimates, using register data of annual wage earnings from 1991 to 2003. Findings - There are weaker earnings effects of comprehensive education relative to vocational training. However, insignificant coefficient results are obtained for individuals aged 43‐55 and also for females who prior to enrolment had experienced two‐year upper secondary schooling or resided in a municipality associated with a low level of average educational attainment. Research limitations/implications - Identification of true underlying effects rely on fixed effects estimates. Using non‐experimental data, one would ideally have access to an instrumental variable, which could explain program choice without being correlated with wage earnings. Practical implications - The results add to our knowledge on the relative average returns to general and specific human capital accumulation. In this specific case, more careful targeting of participants in the AEI could have improved the relative efficiency of the program. Originality/value - This study offers guidance to labour market policy makers on how an appropriate mix is attained between vocational training and comprehensive education.

Suggested Citation

  • Anders Stenberg, 2007. "Comprehensive education or vocational training for the unemployed?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 28(1), pages 42-61, April.
    • Handle: RePEc:eme:ijmpps:v:28:y:2007:i:1:p:42-61
    DOI: 10.1108/01437720710733465
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    Cited by:

    1. Anders Stenberg & Olle Westerlund, 2015. "The long-term earnings consequences of general vs. specific training of the unemployed," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-26, December.
    2. Stenberg, Anders, 2011. "Using longitudinal data to evaluate publicly provided formal education for low skilled," Economics of Education Review, Elsevier, vol. 30(6), pages 1262-1280.
    3. Anders Stenberg & Xavier Luna & Olle Westerlund, 2014. "Does Formal Education for Older Workers Increase Earnings? — Evidence Based on Rich Data and Long-term Follow-up," LABOUR, CEIS, vol. 28(2), pages 163-189, June.
    4. Stenberg, Anders, 2006. "Skill needs and continuing vocational training in Sweden," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-109, WZB Berlin Social Science Center.

    More about this item

    Keywords

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    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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