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The long-term earnings consequences of general vs. specific training of the unemployed
Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI). Linneaus University, Växjö/Kalmar, Sweden; IZA, Bonn, Germany.
Umeå University, Umeå, Sweden.
2015 (English)In: IZA Journal of European Labor Studies, E-ISSN 2193-9012, Vol. 4, no 22, 1-26 p.Article in journal (Refereed) Published
Abstract [en]

Training programs for the unemployed typically involve training specific skills in demand amongst employers. In 1997, Swedish unemployed could also choose general schooling at the upper secondary level. This offers a unique opportunity to assess the theoretically ambiguous long-term relative earnings of general vs. specific training for unemployed. Analyzing detailed administrative data 1990–2010, we find 1) that specific training is associated with higher earnings in the short run, 2) that earnings converge 5–7 years post program and 3) that individuals act on their comparative advantages. When we extrapolate our estimates to life-time earnings, there is overall a relative advantage of specific training. However, for females with limited prior education, we find a relative life-time earnings advantage of general training.

Place, publisher, year, edition, pages
2015. Vol. 4, no 22, 1-26 p.
Keyword [en]
Active labor market programs, Adult education, Vocational training, Earnings
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-123137DOI: 10.1186/s40174-015-0047-9OAI: oai:DiVA.org:su-123137DiVA: diva2:871831
Available from: 2015-11-17 Created: 2015-11-17 Last updated: 2017-12-01Bibliographically approved

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