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Are Training Subsidies for Firms Effective? The Michigan Experience

Author

Listed:
  • Harry J. Holzer
  • Richard N. Block
  • Marcus Cheatham
  • Jack H. Knott

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.

Suggested Citation

  • Harry J. Holzer & Richard N. Block & Marcus Cheatham & Jack H. Knott, 1993. "Are Training Subsidies for Firms Effective? The Michigan Experience," ILR Review, Cornell University, ILR School, vol. 46(4), pages 625-636, July.
  • Handle: RePEc:sae:ilrrev:v:46:y:1993:i:4:p:625-636
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    Cited by:

    1. Edwin Leuven & Hessel Oosterbeek, 2004. "Evaluating the Effect of Tax Deductions on Training," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 461-488, April.
    2. repec:zbw:rwirep:0144 is not listed on IDEAS
    3. Görlitz, Katja, 2010. "The effect of subsidizing continuous training investments -- Evidence from German establishment data," Labour Economics, Elsevier, vol. 17(5), pages 789-798, October.
    4. 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).
    5. Anthony Terriau, 2018. "Occupational mobility and vocational training over the life cycle," Working Papers halshs-01878925, HAL.
    6. repec:taf:ecinnt:v:26:y:2017:i:5:p:405-417 is not listed on IDEAS
    7. Khan, Shakeeb & Ponomareva, Maria & Tamer, Elie, 2016. "Identification of panel data models with endogenous censoring," Journal of Econometrics, Elsevier, vol. 194(1), pages 57-75.
    8. Timothy J. Bartik, "undated". "Increasing the Economic Development Benefits of Higher Education in Michigan," Upjohn Working Papers and Journal Articles tjb2005jwd, W.E. Upjohn Institute for Employment Research.
    9. Holger Görg & Eric Strobl, 2006. "Do Government Subsidies Stimulate Training Expenditure? Microeconometric Evidence from Plant-Level Data," Southern Economic Journal, Southern Economic Association, vol. 72(4), pages 860-876, April.
    10. Giulio Pedrini, 2017. "Law and economics of training: a taxonomy of the main legal and institutional tools addressing suboptimal investments in human capital development," European Journal of Law and Economics, Springer, vol. 43(1), pages 83-105, February.
    11. Lee, Kye Woo, 2016. "Skills Training by Small and Medium-Sized Enterprises: Innovative Cases and the Consortium Approach in the Republic of Korea," ADBI Working Papers 579, Asian Development Bank Institute.
    12. Katja Görlitz, 2009. "The Effect of Subsidizing Continuous Training Investments - Evidence from German Establishment Data," Ruhr Economic Papers 0144, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    13. Timothy J. Bartik, "undated". "What Should the Federal Government Be Doing About Urban Economic Development?," Upjohn Working Papers and Journal Articles tjb1994c, W.E. Upjohn Institute for Employment Research.
    14. H. J. Holzer, "undated". "Employer hiring decisions and antidiscrimination policy," Institute for Research on Poverty Discussion Papers 1085-96, University of Wisconsin Institute for Research on Poverty.
    15. Courant, Paul N., 1994. "How Would You Know a Good Economic Policy if You Tripped Over One? Hint: Don't Just Count Jobs," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(4), pages 863-881, December.
    16. Christiane Hinerasky & Rene Fahr, 2014. "Learning Outcomes, Feedback, and the Performance Effects of a Training Program," Working Papers Dissertations 16, Paderborn University, Faculty of Business Administration and Economics.
    17. Timothy J. Bartik, 2012. "The Future of State and Local Economic Development Policy: What Research Is Needed," Growth and Change, Wiley Blackwell, vol. 43(4), pages 545-562, December.

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