Title: An Evaluation of the Hong Kong Employees Retraining Programme
Reference Number: 1003
Publication Date: October 1999

William Chan and Wing Suen
School of Economics and Finance, The University of Hong Kong

The Employees Retraining Programme , launched by the Hong Kong government in 1993, was promoted as the solution to structural unemployment resulting from rapid structural transformation of the economy. However, our study of the labour market performance of a group of trainees who received training in 1994/5 shows no evidence of any positive effect on the earnings or employment rate of trainees one year after the completion of training when compared to various comparison groups. This apparent lack of success can be traced to low target efficiency and distorted incentives that result in over-utilization of retraining resources.

Published in Asian Economic Journal 14 (September 2000), pp. 255-281.

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Last modified: 01/23/2007