Ruhr Economic Papers
Ruhr Economic Papers #144
The Effect of Subsidizing Continuous Training Investments - Evidence from German Establishment Data
RWI, 11/2009, 22 S./p., 8 Euro, ISBN 978-3-86788-162-3download
This paper evaluates the impact of a training voucher program on establishments' investments in further training. The voucher program that was implemented in the German federal state of North Rhine-Westphalia increased training incentives for employees in small and medium-sized establishments by reducing training costs by 50%. The estimation is based on a quasi-experimental research design exploiting variation across time, regions and establishment size. Using establishment data, I find that the share of establishments that invest in training increased by approximately 5 percentage points. Training intensity and the educational structure of participants remained unaffected among those establishments investing in training.
JEL-Classification: J24, H25
Keywords: Continuous training; employers; training voucher; subsidies; difference-in- difference