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The Long-term Earnings Consequences of General vs. Specific Training of the Unemployed
University of Stockholm. (SOFI)
Umeå University, Faculty of Social Sciences, Department of Economics. (Economic Policy Network / ALC)
2014 (English)Report (Refereed)
Abstract [en]

Training programs for the unemployed typically involve teaching a specific skill to ease the transition into employment. However, in 1997, the Swedish unemployed could choose general/theoretical training through enrollment in one year of full-time studies at the upper secondary school level. This study provides an empirical assessment of the relative earnings impact of general vs. specific training 13 years post-enrollment. In the long term, general training may compensate for the short-term relative earnings loss by enhancing the ability to adapt to changes in demand for skills. The analyses are based on population register data 1990-2010 and an unusually rich set of control variables. The results indicate that both programs are associated with earnings increases. Our relative program estimates reveal a short-term advantage of specific training that converges within 5-7 years. With a longer perspective, there is considerable heterogeneity in the relative earnings estimates. For females with short educations, the earnings increases following general training substantially exceed those following specific training.

Place, publisher, year, edition, pages
Uppsala: Institute for Evaluation of Labour Market and Education Policy (IFAU) , 2014. , 43 p.
, IFAU Working Paper, ISSN 1651-1166 ; 2014:3
Keyword [en]
Active labor market programs, adult education, vocational training, general training
National Category
Research subject
URN: urn:nbn:se:umu:diva-97502OAI: diva2:773325
IFAU Generell och specifik utbildning av arbetslösa; ALC Umeå Universitet
Swedish Research Council, 2006-21576-36119-66

Stenberg finansierad av IFAU Uppsala

Westerlund finansierad av Vetenskapsrådet

Available from: 2014-12-18 Created: 2014-12-18 Last updated: 2015-04-24Bibliographically approved

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Westerlund, Olle
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Department of Economics

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ReferencesLink to record
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