Career Progression and Formal versus on the Job Training Public policy and life-cycle decisions C Meghir UCL and ifs with J Adda, C. Dustmann, J.-M. Robin Presentationprepared for WIse conference in XIAMEN Go to data
Career Progression and Formal versus on the Job Training Public Policy and life-cycle decisions C. Meghir UCL and IFS with J. Adda, C. Dustmann, J.-M. Robin Presentation prepared for WISE conference in XIAMEN Go to data
Introduction Empirical Public finance and Dynamic models context requires inputs from empirically estimated St Designing a tax and welfare benefit system in a 2nd be parameters The literature tends to focus on estimation of commodity and labour supply elasticities, which are the basic variables that respond to taxes and benefits However, individuals are likely to change behaviour in a number of different ways faced with a new regime of taxes and benefits
Introduction Empirical Public Finance and Dynamic Models • Designing a tax and welfare benefit system in a 2nd best context requires inputs from empirically estimated parameters • The literature tends to focus on estimation of commodity and labour supply elasticities, which are the basic variables that respond to taxes and benefits. • However, individuals are likely to change behaviour in a number of different ways faced with a new regime of taxes and benefits
Introduction Empirical Public Finance and Dynamic models In particular we have in mind the implications for human capital accumulation of programmes such as Unemployment Insurance Earned Income Tax Credit Such programmes will have long run dynamic effects on education choice job mobility and job choice
Introduction Empirical Public Finance and Dynamic Models • In particular we have in mind the implications for Human capital accumulation of programmes such as – Unemployment Insurance – Earned Income Tax Credit • Such programmes will have long run dynamic effects on – education choice – job mobility and job choice
Introduction Empirical Public Finance and Dynamic Models The specific context we will consider is the choice by young Germans to follow apprenticeship training and the subsequent path of wages and employment Our model will explain how individuals choose between the two alternative career paths and will quantify the returns to the career We will then use this framework to simulate the impact of programmes such as the EltC, which are not currently operating Our emphasis will be on the effects of these programmes on human capital accumulation
Introduction Empirical Public Finance and Dynamic Models • The specific context we will consider is the choice by young Germans to follow apprenticeship training and the subsequent path of wages and employment. • Our model will explain how individuals choose between the two alternative career paths and will quantify the returns to the career • We will then use this framework to simulate the impact of programmes such as the EITC, which are not currently operating. • Our emphasis will be on the effects of these programmes on human capital accumulation
Introduction The policy issue Welfare to work policies such as EItc may have deeper implications than just affecting employment They change educational incentives They may affect job search behaviour
Introduction The Policy issue • Welfare to work policies such as EITC may have deeper implications than just affecting employment • They change educational incentives • They may affect job search behaviour