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Do Incentives to Continuing Vocational Training Matter? Evidence from Italian Regions
In this paper, we ask whether the economic resources mobilized in favour of continuing vocational training by Laws 236 and 53 in Italy have had a significant impact, both in terms of additional training among workers employed in the private sector, and in terms of higher earnings. We exploit an important discontinuity in the role played by regions in the implementation of these policies, which has generated useful variability between regions and over time in the resources allocated to training. We estimate that one additional euro per head allocated to training increases the expected number of cumulated days of training by 7.09 percent, and that adding one day to the stock of training can raise average annual earnings by 0.2 to 0.9 percent, within the range of the estimates found in the empirical literature. A prudential cost â€“ benefit analysis suggests that adding one additional day of training to the existing average number of days increases the wage bill by 476 million (real) euros and costs 430 million euros in terms of real resources allocated by regions to calls for tenders. These estimates point to the presence of a positive surplus.
Giorgio Brunello is currently Professor of Economics at the University of Padova. He studied Economics at the University of Venice and the LSE where he received his masters degree in 1981. He obtained his PhD from Osaka University, Japan, in 1987. He taught at Osaka University (1987-89), the University of Venice (1990-96) and the University of Udine (1996-98) and held visiting positions at LSE (1988-89), Kyoto (1992-2002-2007), Osaka (1997), University of California at Berkeley (1995), Deakin (1996), Oxford (1998), IZA (1999), Boston (2000), Essex (2000), Paris II (2003), Tokyo (2004), Collegio Carlo Alberto (2006) and CESifo (2007). He is research fellow at CESifo and member of the European Experts Network on the Economics of Education (EENEE). His current research interests are the economics education and training and personnel economics.