We propose a regression-adjusted matched difference-indifferences framework to estimate pecuniary and non-pecuniary returns to adult education. This approach combines kernel matching with entropy balancing to account for selection bias and sorting on gains. Using data from the German SOEP, we evaluate the effect of work-related training, which represents the largest portion of adult education in OECD countries, on individual social capital and earnings. As the related literature, we estimate positive monetary returns to work-related training. In addition, training participation increases participation in civic, political, and cultural activities while not crowding out social participation. Results are robust against a variety of potentially confounding explanations. These findings imply positive externalities from work-related training over and above the well-documented labor market effects.
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Language skills are central to refugee integration and the availability of language courses could thus be a limiting factor. We explore how the most important provider of language courses in Germany, adult education centers (VHS), adapted their course supply to the refugee wave of 2015/2016. Our results highlight two channels through which the local environment can affect opportunities for participation in adult learning: First, exploiting the quasi-random allocation of refugees to counties, we causally estimate by how much VHS scaled up their German language course (DAF) supply as a reaction. Moreover, we show that DAF courses were created almost exclusively at the cost of other courses, that is, by crowding out. Second, we uncover heterogeneities in scaling success. VHS with more prior DAF course experience and larger VHS adapted better, which shows the relevance of initial conditions in course offers.
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