Appendix B: Detailed results Skills Development

Official title: Evaluation of the Labour Market Development Agreement

Table B1. Socio-demographic and labour market characteristics of Skills Development participants
Active claimants Former claimants
2002-2005 2007-2008 2002-2005 2007-2008
Number of observations 127,056 72,100 42,516 29,375
Gender
Male 54% 52% 47% 44%
Female 46% 48% 53% 56%
Age
Under 25 20% 18% 20% 20%
25 to 34 32% 29% 35% 33%
35 to 44 28% 27% 26% 25%
45 and over 20% 25% 18% 21%
Marital status
Married or common-law 44% 47% 35% 38%
Widow/ divorced or separated 12% 11% 14% 12%
Single 42% 41% 47% 46%
Missing data / Unknown 1% 2% 3% 4%
Skills level related to National Occupation Code associated with  the last EI claim opened before SD participation1
Managerial 3% 4% 3% 3%
University 4% 3% 5% 3%
College or apprenticeship training 27% 27% 22% 22%
Secondary or occupational training 40% 40% 41% 41%
On-the-job training 26% 27% 29% 31%
Key labour market indicators in the year preceding the start of participation
Earnings2 $19,206 $20,0243 $8,280 $8,6693
Proportion employed 98% 99% 79% 82%
Proportion on EI 53% 53% 68% 65%
Proportion on SA 6% 5% 24% 22%

1 Proportions may not add up to 100% due to rounding

Skill level corresponds to the type and/or amount of training or education typically required to work in the last occupation participants had before opening the last EI claim they had before participating in EBSMs:

  • -Managerial: Management occupations
  • -University: Occupations usually requiring university education (in other words, University degree at the bachelor's, master's or doctorate level)
  • -College or apprenticeship training: Occupations usually requiring college or vocational education or apprenticeship training such as 2 to 3 years of post-secondary education at a community college, institute of technology or CEGEP or 2 to 5 years of apprenticeship training or 3 to 4 years of secondary school and more than 2 years of on-the-job training, specialized training courses or specific work experience and/or occupations with supervisory responsibilities and occupations with significant health and safety responsibilities, such as firefighters, police officers and registered nursing assistants.
  • - Secondary or occupational training: Occupations usually requiring secondary school and/or occupation-specific training such as one to four years of secondary school education or up to 2 years of on-the-job training specialized training courses or specific work experience.
  • -On-the-job training: On-the-job training is usually provided for occupations (in other words, short work demonstration or on-the-job training or no formal educational requirements).

2 Average earnings for all individuals included in the studies. The average was calculated including participants who reported $0 earnings during that year.

3 Earnings for 2007-2008 participants have been adjusted by the Consumer Price Index published by Statistics Canada, using 2002 as the base year.

Table B2. Incremental impacts for Skills Development – Active claimants
Indicators In-program period Post-program period Total in- and post-program
Program start year Additional year 1st year 2nd year 3rd year 4th year 5th year Total post
All active claimants
2002-2005 participants (n=64,283 or a random sample of 50% of participants)
Employment earnings ($) -4,747*** -4,211*** 204*** 2,052*** 3,077*** 3,761*** 4,059*** 13,156*** 4,197***
Incidence of employment
(percentage points)
-4.5*** -4.7*** 2.4*** 3.7*** 4*** 4.2*** 4.4** n/a n/a
EI benefits ($) 1,847*** 222*** -470*** -218*** -128*** -89*** -69*** -976*** 1,093***
EI weeks (weeks) 6.3*** 0.7*** -1.7*** -0.8*** -0.5*** -0.4*** -0.3*** -3.7*** 3.3***
SA benefits ($) 21** 44*** 36*** -8 -30*** -35*** -31*** -69 -3
Dependence on income support (percentage points) 16.4** 7.4*** -2.2*** -1.5*** -1.3*** -1.2*** -1*** n/a n/a
2007-2008 participants (n=18,025 or a random sample of 25% of participants)
Employment earnings ($) -5,581*** -5,040*** 292*** 2,745*** 3,904*** - - 6,943*** -3,660***
Incidence of employment
(percentage points)
-4.8*** -6.0*** 3.1*** 5.2*** 5.8*** - - n/a n/a
EI benefits ($) 1,949*** -199*** -755*** -298*** -191*** - - -1,244*** 506***
EI weeks (weeks) 5.7*** -0.8*** -2.3*** -0.9*** -0.5*** - - -3.7*** 1.3***
SA benefits ($) 18 -20 -18 -54*** -58*** - - -130*** -131*
Dependence on income support (percentage points) 16.3*** 5.6*** -4.4*** -2.9*** -2.1*** - - n/a n/a
Sub-groups of active claimants
Youth (below 30 years old) – 2002-2005 participants (n=47,458)
Employment earnings ($) -4,292*** -4,626*** -138 1,834*** 2,802*** 3,407*** 3,656*** 11,561*** 2,644***
Incidence of employment
(percentage points)
-5*** -6.1*** 1.4 *** 2.6*** 3*** 2.5*** 2.7*** n/a n/a
EI benefits ($) 1,580*** 244*** -454*** -191*** -72*** -20 -4 -741*** 1,084***
EI weeks (weeks) 6.2*** 1.2*** -1.5*** -0.6*** -0.3*** -0.1* -0.1 -2.6*** 4.8***
SA benefits ($) 21*** 7 -8 -35*** -49*** -62*** -57*** -212*** -183***
Dependence on income support (percentage points) 15.9*** 8.6*** -2.4*** -1.6*** -1.3*** -1.2 *** -1*** n/a n/a
Older workers (55 years old and over) – 2002-2005 participants (n=4,602)
Employment earnings ($) -2,997*** -621* 2,698*** 3,872*** 4,286*** 4,701*** 4,940*** 20,498*** 16,879***
Incidence of employment
(percentage points)
-2.4*** 3.6 *** 9.6*** 11.7*** 12.7 *** 13*** 12.2*** n/a n/a
EI benefits ($) 1,735*** 79 -198** 128 268*** 440*** 384*** 1,022*** 2,837***
EI weeks (weeks) 5.1*** -0.3 -1*** 0.1 0.6** 1.1*** 1*** 1.8* 6.6***
SA benefits ($) -53*** 92*** 100*** 99*** 73*** 70*** 71*** 413*** 452***
Dependence on income support (percentage points) 11.1*** 1.3* -0.6 2.3 *** 2.2*** 3.7*** 3.6*** n/a n/a
Long-tenured workers - 2007-2009 participants (n=41,714)
Employment earnings ($) -9,930*** -9,523*** -2,854*** 254** 1,548*** - - -1,052*** -20,505***
Incidence of employment
(percentage points)
-5.2*** -6.2*** 2.5*** 4.2*** 4.7*** - - n/a n/a
EI benefits ($) 3,492*** 1,373*** -348*** -196*** -72*** - - -617*** 4,249***
EI weeks (weeks) 8.1*** 2.8*** -1.1*** -0.5*** -0.3*** - - -1.9*** 9.1***
SA benefits ($) 1 23*** 36*** 5 -11 - - 29 54**
Dependence on income support (percentage points) 21.2*** 11.9*** -1.1*** -1.2*** -0.3** - - n/a n/a

Significance level *** 1%; ** 5%; * 10%

Table B3. Incremental impacts for Skills Development - Former claimants
Indicators In-program period Post-program period Total in- and post-program
Program start year Additional year 1st year 2nd year 3rd year 4th year 5th year Total post
All former claimants
2002-2005 Participants (n=42,513 or 100% of participants)
Employment earnings ($) -2,405*** -2,432*** 496*** 1,550*** 2,029*** 2,326*** 2,521*** 8,923*** 4,085***
Incidence of employment
(percentage points)
-10*** -4*** 3*** 5*** 5*** 5*** 5*** n/a n/a
EI benefits ($) 395*** -70*** -54*** 171*** 217*** 203*** 183*** 720*** 1,046***
EI weeks (weeks) 1.4*** -0.5*** -0.4*** 0.5*** 0.6*** 0.5*** 0.4** 1.5*** 2.5***
SA benefits ($) -236*** -334*** -195*** -209*** -237*** -241*** -247*** -1,131*** -1,702***
Dependence on income support (percentage points) 8.3** -1.6*** -3.3*** -2.3*** -2.4*** -2.4*** -2.8*** n/a n/a
2007-2008 Participants (n=17,625 or a random sample of 60% of participants)
Employment earnings ($) -3,570*** -3,727*** -170*** 1,153*** 1,821*** - - 2,791*** -4,511***
Incidence of employment
(percentage points)
-12.5*** -6.5*** 2.5*** 5.0*** 5.8*** - - n/a n/a
EI benefits ($) 477*** -263*** -267*** 124*** 186*** - - 43 257**
EI weeks (weeks) 1.5*** -1.0*** -1.1*** 0.2* 0.3*** - - -0.6** -0.1
SA benefits ($) -323*** -410*** -240*** -223*** -207*** - - -669*** -1,403***
Dependence on income support (percentage points) 8.9*** -2.6*** -4.3*** -2.5*** -2.2*** - - n/a n/a
Sub-groups of former claimants
Youth (below 30 years old) – 2002-2005 participants (n=16,941)
Employment earnings ($) -2,265*** -2,601*** 423*** 1,485*** 1,802*** 1,931*** 1,946*** 7,588*** 2,722***
Incidence of employment
(percentage points)
-10.4*** -5.5*** 2.4*** 4.4*** 4.6*** 4.5*** 4.3*** n/a n/a
EI benefits ($) 397*** -35*** -116*** 155*** 205*** 162*** 172*** $578*** $940***
EI weeks (weeks) 1.6*** -0.3*** -0.6*** 0.4*** 0.6*** 0.4*** 0.4*** 1.1*** 2.4***
SA benefits ($) -248*** -385*** -178*** -192*** -217*** -237*** -236*** -1,060*** -1,693***
Dependence on income support (percentage points) 8.8*** -0.8** -3.1*** -2*** -1.9*** -2.3*** -2.5*** n/a n/a
Older workers (55 years old and over) – 2002-2005 participants (n=1,408)
Employment earnings ($) -1,587*** -756* 990** 1,217** 1,675*** 2,663*** 2,209*** 8,754*** 6,411**
Incidence of employment
(percentage points)
-6.2*** 0.4 4.1*** 4.6*** 4.7*** 5.7*** 5.5*** n/a n/a
EI benefits ($) 225** -100 6 168* 171* 77 146 568 693
EI weeks (weeks) 0.9** -0.8*** -0.2 0.4 0.4 0.1 0.2 0.9 1
SA benefits ($) -161** -86 -79 -100 -74 -25 -26 -305 -552
Dependence on income support (percentage points) 6*** -1.7* -1.3 -1.1 -0.7 0.1 0.5 n/a n/a
Long-tenured workers - 2007-2009 participants (n=8,647)
Employment earnings ($) -4,756*** -5,371*** -914*** 674*** 1,155*** - - 917 -9,216***
Incidence of employment
(percentage points)
-13.4*** -5.6*** 2.8*** 4.5*** 4.5*** - - n/a n/a
EI benefits ($) 954*** -27 -166*** 203*** 276*** - - 312*** 1,239***
EI weeks (weeks) 2.4*** -0.4*** -0.6*** 0.4*** 0.6*** - - 0.3 2.2***
SA benefits ($) -287*** -330*** -255*** -206*** -175*** - - -636*** -1,253***
Dependence on income support (percentage points) 10.6*** -2.7*** -4.5*** -2.5*** -1.6*** - - n/a n/a

Significance level *** 1%; ** 5%; * 10%

Table B4. Cost-benefit results from the social perspective for Skills Development
Total costs and benefits over participation (1 to 2 years) and 6 years post-program Active claimants
(n=64,283)
Former claimants
(n=42,513)
Program cost -$8,500 -$8,766
Marginal social costs of public funds -$1,707 -$1,471
Employment earnings (including participant’s forgone earnings) $4,875 $4,333
Fringe benefit $731 $650
Net present value
(By how much do the benefits exceed the costs 6 years after participation?)
-$4,600 -$5,254
Cost-benefit ratio
(How much does it cost in EI part II funds to achieve $1 in benefit 6 years after participation?)
$2.20 $2.50
Payback period
(How many years after participation would it take for the benefits to recover the costs?)
7.4 years 8.6 years
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