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Government-sponsored labour-market training and output growth - cyclical, structural and globalization influences

Author

Listed:
  • Eleftherios Goulas

    () (Department of Law & Finance, Bedfordshire University, UK)

  • Athina Zervoyianni

    () (Department of Economics, University of Patras, Greece; The Rimini Centre for Economic Analysis)

Abstract

Empirical work on the effects of government-sponsored labour-market training programs (LTPs) has been largely focused on the unemployment-exit and employment-entry probabilities of program participants using micro-level data. This paper seeks to add to the current literature by providing broad cross-country evidence on whether or not additional public-sector resources allocated to LTPs contributes to raising output growth and per-capita incomes. Using data from OECD countries during 1989-2009 and GMM estimation, we find evidence suggesting that on average labour-market training programs are growth-enhancing. The positive growth-effect of LTP-spending is found to be stronger the more favourable are business-cycle conditions, the larger is the magnitude of structural shocks at country level and the greater is the scale of opening-up of markets at the global level.

Suggested Citation

  • Eleftherios Goulas & Athina Zervoyianni, 2017. "Government-sponsored labour-market training and output growth - cyclical, structural and globalization influences," Working Paper series 17-19, Rimini Centre for Economic Analysis.
  • Handle: RePEc:rim:rimwps:17-19
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    References listed on IDEAS

    as
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    3. Lorraine Dearden & Howard Reed & John Van Reenen, 2006. "The Impact of Training on Productivity and Wages: Evidence from British Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 397-421, August.
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    More about this item

    Keywords

    training policy; output growth; cyclical; structural and globalization influences;

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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