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

Listed author(s):
  • Laura Abramovsky
  • Erich Battistin
  • Emla Fitzsimons
  • Alissa Goodman
  • Helen Simpson

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.

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File URL: http://dx.doi.org/10.1086/656372
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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 29 (2011)
Issue (Month): 1 (01)
Pages: 153-193

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Handle: RePEc:ucp:jlabec:v:29:y:2010:i:1:p:153-193
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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  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. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 1-9.
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  5. Lisa M. Lynch & Sandra E. Black, 1998. "Beyond the Incidence of Employer-Provided Training," ILR Review, Cornell University, ILR School, vol. 52(1), pages 64-81, October.
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  8. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
  9. Katz, Eliakim & Ziderman, Adrian, 1990. "Investment in General Training: The Role of Information and Labour Mobility," Economic Journal, Royal Economic Society, vol. 100(403), pages 1147-1158, December.
  10. Heckman, J.J. & Hotz, V.J., 1988. "Choosing Among Alternative Nonexperimental Methods For Estimating The Impact Of Social Programs: The Case Of Manpower Training," University of Chicago - Economics Research Center 88-12, Chicago - Economics Research Center.
  11. Mark A. Loewenstein & James R. Spletzer, 1999. "General and Specific Training: Evidence and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 34(4), pages 710-733.
  12. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," Review of Economic Studies, Oxford University Press, vol. 72(1), pages 1-19.
  13. Krueger, Alan & Rouse, Cecilia, 1998. "The Effect of Workplace Education on Earnings, Turnover, and Job Performance," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 61-94, January.
  14. Lorraine Dearden & Leslie McGranahan & Barbara Sianesi, 2004. "An In-Depth Analysis of the Returns to National Vocational Qualifications Obtained at level 2," CEE Discussion Papers 0046, Centre for the Economics of Education, LSE.
  15. Stevens, Margaret, 1994. "A Theoretical Model of On-the-Job Training with Imperfect Competition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 537-562, October.
  16. Chang, Chun & Wang, Yijiang, 1996. "Human Capital Investment under Asymmetric Information: The Pigovian Conjecture Revisited," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 505-519, July.
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