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The effects of an education-leave program on educational attainment and labor-market outcomes

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  • Antti Kauhanen

Abstract

I study the effect of an education-leave subsidy for the employed on labor-market outcomes and educational attainment using Finnish administrative linked employer-employee panel data and matching methods. The adult education allowance is available to employees with at least eight years of work experience and allows them to take a leave for 2–18 months to participate in an education program. I find large positive treatment effects on educational attainment and changing occupation. The treatment effects on earnings and employment are negative during the lock-in period and close to zero afterward. The effects are more positive for the less educated.

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  • Antti Kauhanen, 2021. "The effects of an education-leave program on educational attainment and labor-market outcomes," Education Economics, Taylor & Francis Journals, vol. 29(6), pages 651-669, November.
    • Handle: RePEc:taf:edecon:v:29:y:2021:i:6:p:651-669
    DOI: 10.1080/09645292.2021.1929849
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    Cited by:

    1. Kauhanen, Antti & Virtanen, Hanna, 2021. "Heterogeneity in Labor Market Returns to Adult Education," ETLA Working Papers 91, The Research Institute of the Finnish Economy.

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