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Estimating the return to training and occupational experience: The case of female immigrants

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  • Cohen-Goldner, Sarit
  • Eckstein, Zvi

Abstract

We formulate a dynamic discrete choice model of training and employment to measure the personal and social benefits from government provided training for a sample of high-skilled female immigrants from the Former Soviet Union in Israel. We find that training has a significant impact on the mean offered wage in white-collar occupations, but not in blue-collar occupations. Training substantially increases the job-offer rates in both occupations. Counterfactual policy simulations show a substantial social gain from increasing the access to training programs, and the estimated model provides a good fit for within-sample, out-of-sample and aggregate trends using cross-sectional survey data.

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  • Cohen-Goldner, Sarit & Eckstein, Zvi, 2010. "Estimating the return to training and occupational experience: The case of female immigrants," Journal of Econometrics, Elsevier, vol. 156(1), pages 86-105, May.
    • Handle: RePEc:eee:econom:v:156:y:2010:i:1:p:86-105
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    Cited by:

    1. Belzil, Christian, 2007. "The return to schooling in structural dynamic models: a survey," European Economic Review, Elsevier, vol. 51(5), pages 1059-1105, July.
    2. Gil S. Epstein & Erez Siniver, 2012. "Can an ethnic group climb up from the bottom of the ladder?," Economics Bulletin, AccessEcon, vol. 32(3), pages 2414-2441.
    3. Eskil Heinesen & Leif Husted & Michael Rosholm, 2013. "The effects of active labour market policies for immigrants receiving social assistance in Denmark," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-22, December.
    4. Sarit Cohen Goldner & Gil Epstein, 2014. "Age at immigration and high school dropouts," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-20, December.
    5. Fabio Méndez & Facundo Sepúlveda & Nieves Valdés, 2016. "Legalization and human capital accumulation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 721-756, July.
    6. Aldashev, Alisher & Thomsen, Stephan L. & Walter, Thomas, 2010. "Short-term training programs for immigrants: do effects differ from natives and why?," ZEW Discussion Papers 10-021, ZEW - Leibniz Centre for European Economic Research.
    7. Cohen-Goldner, Sarit & Paserman, M. Daniele, 2011. "The dynamic impact of immigration on natives' labor market outcomes: Evidence from Israel," European Economic Review, Elsevier, vol. 55(8), pages 1027-1045.
    8. Susumu Imai & Derek Stacey & Casey Warman, 2019. "From engineer to taxi driver? Language proficiency and the occupational skills of immigrants," Canadian Journal of Economics, Canadian Economics Association, vol. 52(3), pages 914-953, August.
    9. Matti Sarvimaki & Kari Hamalainen, 2010. "Assimilating Immigrants: The Impact of an Integration Program," RF Berlin - CReAM Discussion Paper Series 1019, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    10. Carla Haelermans & Lex Borghans, 2012. "Wage Effects of On-the-Job Training: A Meta-Analysis," British Journal of Industrial Relations, London School of Economics, vol. 50(3), pages 502-528, September.
    11. Susumu Imai & Derek G. Stacey & Casey Warman, 2011. "From Engineer To Taxi Driver? Occupational Skills And The Economic Outcomes Of Immigrants," Working Paper 1275, Economics Department, Queen's University.
    12. Ulf Rinne, 2013. "The evaluation of immigration policies," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 28, pages 530-552, Edward Elgar Publishing.
    13. de Grip, Andries & Pleijers, Astrid, 2019. "Workshop attendance as a mode of learning: Evidence from the Netherlands," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    14. Arbel, Yuval & Tobol, Yossef & Siniver, Erez, 2012. "Social Involvement and Level of Household Income among Immigrants: New Evidence from the Israeli Experience," IZA Discussion Papers 6416, Institute of Labor Economics (IZA).
    15. M Daniele Paserman, 2013. "Do high-skill immigrants raise productivity? Evidence from Israeli manufacturing firms, 1990-1999," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-31, December.
    16. Buchinsky, Moshe & Gotlibovski, Chemi & Lifshitz, Osnat, 2023. "Residential location and the male-female gap in labor market outcomes—a lesson from newcomers to israel," Labour Economics, Elsevier, vol. 81(C).
    17. Chiswick, Barry R. & Rebhun, Uzi & Beider, Nadia, 2016. "Linguistic and Economic Adjustment among Immigrants in Israel," IZA Discussion Papers 10214, Institute of Labor Economics (IZA).
    18. Stephan Thomsen & Thomas Walter & Alisher Aldashev, 2013. "Short-term training programs for immigrants in the German welfare system: do effects differ from natives and why?," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-20, December.
    19. Stephan L. Thomsen & Thomas Walter, 2010. "Temporary Extra Jobs for Immigrants: Merging Lane to Employment or Dead‐End Road in Welfare?," LABOUR, CEIS, vol. 24(s1), pages 114-140, December.
    20. de Grip, Andries & Pleijers, Astrid, 2019. "Workshop attendance as a mode of learning:," Research Memorandum 024, Maastricht University, Graduate School of Business and Economics (GSBE).

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    More about this item

    Keywords

    Immigration Occupation Training Transitions Welfare;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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