Are Training Subsidies for Firms Effective? The Michigan Experience

Harry J. Holzer, Richard N. Block, Marcus Cheatham, Jack H. Knott

Industrial and Labor Relations Review · 1993 · 212 citations · 10 references

Concepts

Abstract

This paper explores the effects of a state-financed training grant program for manufacturing firms in Michigan. Using a three-year panel of data from a unique survey of firms that applied for these grants, the authors estimate the effects of receipt of a grant on total hours of training in the firm and the product scrap rate. They find that receipt of these grants is associated with a large and significant, though one-time, increase in training hours, and with a more lasting reduction in scrap rates.

References

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