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Employer-Provided Training and Tenure-Earnings

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  • Theodossiou, I
  • Williams, H

Abstract

This article examines the tenure-earnings profiles and suggests that the more training is provided to the individual by the employer, the steeper is the tenure profile of earnings. The provision of training by the employer is modeled as endogenous and subject to choice decisions using an ordered probit model corresponding to three levels of training. The earnings equations of three groups of employees are then adjusted for potential effects of bias due to selectivity by using L. F. Lee's procedure, and heterogeneity bias using the Altonji and Shakotko instrumental variable procedure. Copyright 1998 by Scottish Economic Society.

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Bibliographic Info

Article provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.

Volume (Year): 45 (1998)
Issue (Month): 3 (August)
Pages: 258-72

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Handle: RePEc:bla:scotjp:v:45:y:1998:i:3:p:258-72

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