The Effectiveness of the Youth Training Scheme as a Manpower Policy

Abstract

Using data from the 1985 and 1986 Scottish People's Surveys, this paper attempts to measure the effectiveness of the Youth Training Scheme by estimating the impact of Youth Training Scheme participation on both the subsequent probability of employment and the subsequent earnings potential. The Youth Training Scheme is found to have a positive impact on the probability of employment. After allowing for possible sample-selection bias owing to participation being nonrandom, there are indications that the Youth Training Scheme may have a positive impact on subsequent wages, but the estimates are so imprecise that it was not possible to draw any statistically significant conclusions about wage effects. Copyright 1990 by The London School of Economics and Political Science.