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Money Matters: Evidence from a Large-Scale Randomized Field Experiment with Vouchers for Adult Training

Author Info

  • Messer, Dolores

    ()

    (University of Bern)

  • Wolter, Stefan C.

    ()

    (University of Bern)

Abstract

This paper presents the results of a randomized experiment analyzing the use of vouchers for adult training. In 2006, 2,400 people were issued with a training voucher which they were entitled to use in payment for a training course of their choice. User behavior was compared with a control group of 14,000 people. People in the treatment and in the control group were not aware at any time that they were part of an experiment. The experiment shows that the voucher had a significant causal impact on participation in training modules. Nevertheless, the increase was partially offset by a deadweight loss in excess of fifty percent.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4017.

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Length: 35 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4017
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Keywords: field experiment; voucher; adult education; training; Switzerland;

Other versions of this item:

Find related papers by JEL classification:
  • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
  • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

This paper has been announced in the following NEP Reports:

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  1. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
  2. List John A., 2007. "Field Experiments: A Bridge between Lab and Naturally Occurring Data," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(2), pages 1-47, April.
  3. John List & Steven Levitt, 2009. "Field experiments in economics: The past, the present, and the future," Artefactual Field Experiments 00079, The Field Experiments Website.
  4. Brunello, Giorgio, 2001. "On the Complementarity between Education and Training in Europe," IZA Discussion Papers 309, Institute for the Study of Labor (IZA).
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  6. Rothstein, Jesse & Rouse, Cecilia Elena, 2011. "Constrained after college: Student loans and early-career occupational choices," Journal of Public Economics, Elsevier, vol. 95(1-2), pages 149-163, February.
  7. Viitanen, Tarja, 2007. "Public versus Private Provision of Daycare: An Experimental Evaluation," IZA Discussion Papers 3009, Institute for the Study of Labor (IZA).
  8. Ernst Fehr & Lorenz Goette, 2007. "Do Workers Work More if Wages Are High? Evidence from a Randomized Field Experiment," American Economic Review, American Economic Association, vol. 97(1), pages 298-317, March.
  9. Bettinger, Eric & Slonim, Robert, 2006. "Using experimental economics to measure the effects of a natural educational experiment on altruism," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1625-1648, September.
  10. Bassanini, Andrea & Brunello, Giorgio, 2003. "Is Training More Frequent When Wage Compression is Higher? Evidence from the European Community Household Panel," IZA Discussion Papers 839, Institute for the Study of Labor (IZA).
  11. L Feinstein & Fernando Galindo-Rueda & Anna Vignoles, 2004. "The Labour Market Impact of Adult Education and Training: A cohort analysis," CEE Discussion Papers 0036, Centre for the Economics of Education, LSE.
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  16. Cunha, Flavio & Heckman, James J. & Lochner, Lance, 2006. "Interpreting the Evidence on Life Cycle Skill Formation," Handbook of the Economics of Education, Elsevier.
  17. Conti, Gabriella, 2005. "Training, productivity and wages in Italy," Labour Economics, Elsevier, vol. 12(4), pages 557-576, August.
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  19. Jörn-Steffen Pischke, 2004. "The Impact of the School Year on Student Performance and Earnings: Evidence from the German short school years," CEE Discussion Papers 0034, Centre for the Economics of Education, LSE.
  20. Uri Gneezy & John A. List, 2006. "Putting Behavioral Economics to Work: Testing for Gift Exchange in Labor Markets Using Field Experiments," NBER Working Papers 12063, National Bureau of Economic Research, Inc.
  21. Helen F. Ladd, 2002. "School Vouchers: A Critical View," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 3-24, Fall.
  22. Joshua D. Angrist, 2004. "American Education Research Changes Tack," Oxford Review of Economic Policy, Oxford University Press, vol. 20(2), pages 198-212, Summer.
  23. Mary A. Silles, 2007. "Adult Education And Earnings: Evidence From Britain," Bulletin of Economic Research, Wiley Blackwell, vol. 59(4), pages 313-326, October.
  24. Hessel Oosterbeek, 1998. "Innovative Ways to Finance Education and Their Relation to Lifelong Learning," Education Economics, Taylor & Francis Journals, vol. 6(3), pages 219-251.
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  26. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. El bono de formación: ¿cómo dejar de ser promesa electoral?
    by Florentino Felgueroso in Nada Es Gratis on 2015-01-15 07:10:12
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Cited by:

  1. Martin Schlotter & Guido Schwerdt & Ludger Woessmann, 2009. "Econometric Methods for Causal Evaluation of Education Policies and Practices: A Non-Technical Guide," CESifo Working Paper Series 2877, CESifo Group Munich.
  2. 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.
  3. Ruud Gerards & Andries de Grip & Maaike Witlox, 2014. "'Employability-miles' and worker employability awareness," Applied Economics, Taylor & Francis Journals, vol. 46(9), pages 952-965, March.
  4. Poeschel, Friedrich, 2014. "Assignment vs. choice: lessons from training vouchers," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100606, Verein für Socialpolitik / German Economic Association.
  5. Commission of Experts for Research and Innovation (EFI), Berlin (ed.), 2012. "Research, innovation and technological performance in Germany - EFI Report 2012," Research, innovation and technological performance in Germany: Report, Expertenkommission Forschung und Innovation (EFI), volume 127, number 2012e.
  6. Sascha O. Becker & Dolores Messer & Stefan C. Wolter, 2011. "A Gift is not Always a Gift: Gift Exchange in a Voucher Experiment," CESifo Working Paper Series 3488, CESifo Group Munich.

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