Evaluating outcomes from the Youth Training Scheme using matched firm-trainee data

Using matched data on school-leavers and training providers who participate in government-funded training schemes, this paper evaluates the effectiveness of youth training on employment outcomes. Ex-participants are more likely to be employed four years after leaving school than non-participants, and have higher exit rates from unemployment. However, a large proportion of, 'successful' outcomes are accounted for by participants who are kept on by their training providers after training finishes. Those characteristics which influence whether participants are kept on by their training provider are examined. Youth training appears to operate as a screening device for employers looking to hire new entrants to the labour market.