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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