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Providing Employers with Incentives to Train Low-SkilledWorkers: Evidence from the UK Employer Training Pilots

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  • Laura Abramovsky
  • Erich Battistin
  • Emla Fitzsimons
  • Alissa Goodman
  • Helen Simpson

Abstract

We use unique workplace and employee-level data to evaluate a majorUK government pilot program to increase qualification-based, employer-providedtraining for low-qualified employees. We evaluate the program'seffect using a difference-in-differences approach. Using data on eligibleemployers and workers we find no evidence of a statistically significanteffect on the take-up of training in the first 3 years of the program.Our results suggest that the program involved a high level of deadweightand that improving the additionality of the subsequent national programis crucial if it is to make a significant contribution toward governmenttargets to increase qualification levels. (c) 2011 by The University of Chicago. Allrights reserved.

Suggested Citation

  • Laura Abramovsky & Erich Battistin & Emla Fitzsimons & Alissa Goodman & Helen Simpson, 2011. "Providing Employers with Incentives to Train Low-SkilledWorkers: Evidence from the UK Employer Training Pilots," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 153-193, January.
  • Handle: RePEc:ucp:jlabec:v:29:y:2010:i:1:p:153-193
    DOI: 10.1086/656372
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    References listed on IDEAS

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    Cited by:

    1. Wotschack, Philip, 2020. "When Do Companies Train Low-Skilled Workers? The Role of Institutional Arrangements at the Company and Sectoral Level," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 587-616.
    2. repec:cep:cverdp:027 is not listed on IDEAS
    3. Christos Bilanakos & Colin P. Green & John S. Heywood & Nikolaos Theodoropoulos, 2017. "Do Dominant Firms Provide More Training?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(1), pages 67-95, February.
    4. van den Berg, Gerard J. & Dauth, Christine & Homrighausen, Pia & Stephan, Gesine, 2018. "Informing Employees in Small and Medium Sized Firms about Training: Results of a Randomized Field Experiment," IZA Discussion Papers 11963, Institute of Labor Economics (IZA).
    5. Brunello, Giorgio & Comi, Simona, 2013. "The Side Effect of Pension Reforms on Training: Evidence from Italy," IZA Discussion Papers 7755, Institute of Labor Economics (IZA).
    6. Dauth, Christine, 2017. "Regional discontinuities and the effectiveness of further training subsidies for low-skilled employees," IAB Discussion Paper 201707, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. 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.
    8. Wiljan van den Berge & Egbert Jongen & Karen van der Wiel, 2017. "Using Tax Deductions to Promote Lifelong Learning: Real and Shifting Responses," CPB Discussion Paper 353.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    9. Singer, Christine & Toomet, Ott-Siim, 2013. "On government-subsidized training programs for older workers," IAB Discussion Paper 201321, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Pelucha, Martin & Kveton, Viktor & Potluka, Oto, 2019. "Using mixed method approach in measuring effects of training in firms: Case study of the European Social Fund support," Evaluation and Program Planning, Elsevier, vol. 73(C), pages 146-155.
    11. Dauth, Christine, 2016. "Do low-skilled employed workers benefit from further training subsidies?," VfS Annual Conference 2016 (Augsburg): Demographic Change 145533, Verein für Socialpolitik / German Economic Association.
    12. Philip Wotschack, 2020. "When Do Companies Train Low‐Skilled Workers? The Role of Institutional Arrangements at the Company and Sectoral Level," British Journal of Industrial Relations, London School of Economics, vol. 58(3), pages 587-616, September.
    13. Van den Berge, Wiljan & Jongen, Egbert L. W. & van der Wiel, Karen, 2017. "Using Tax Deductions to Promote Lifelong Learning: Real and Shifting Responses," IZA Discussion Papers 10885, Institute of Labor Economics (IZA).
    14. Martins, Pedro S., 2021. "Employee Training and Firm Performance: Evidence from ESF Grant Applications," IZA Discussion Papers 14153, Institute of Labor Economics (IZA).
    15. Christine Dauth & Ott Toomet, 2016. "On Government-Subsidized Training Programs for Older Workers," LABOUR, CEIS, vol. 30(4), pages 371-392, December.
    16. Wotschack, Philip, 2020. "Drivers of training participation in low skilled jobs: the role of ‘voice’, technology, innovation and labor shortages in German companies," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 245-264.
    17. van den Berg, Gerard J. & Dauth, Christine & Homrighausen, Pia & Stephan, Gesine, 2019. "Informing employees in small and medium sized firms about training: results of a randomized field experiment," IAB Discussion Paper 201922, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    18. Marc van der Steeg & Roel van Elk, 2015. "The effect of schooling vouchers on higher education enrollment and completion of teachers: A regression discontinuity analysis," CPB Discussion Paper 305.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    19. Brunello, Giorgio & Comi, Simona, 2015. "The side effect of pension reforms on the training of older workers. Evidence from Italy," The Journal of the Economics of Ageing, Elsevier, vol. 6(C), pages 113-122.

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