Study on the Return on ESF Investment in Human Capital

Through this study, the European Commission (DG EMPL) intends to make a series of important inputs into the design of the next programmes of the European Social Fund (ESF) which will come to birth in 2014. Knowing that the ESF supports thousands of training activities per year across Europe, the study assesses the return on such investments in terms of benefits for the participants, for the employers, and for the society at large. A literature review is intended to synthesise the lessons learned and to identify the knowledge gaps, under the scrutiny of a panel of experts. In addition the study reviewed the whole range of relevant quantitative methods (randomised controlled trials, econometric approaches, models, cost-benefit analysis), and tested some of them on the basis of individual information on participants and non-participants in four countries. The study is due to suggest policy priorities as regards the various types of human capital investment, and to recommend evaluation approaches that might accelerate the pace of learning and transferring lessons. The works are led by Euréval in cooperation with Ecorys and Rambøll-Management.