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Training, Mobility, and Wages: Specific Versus General Human Capital

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  • Alfred Garloff

    ()
    (ZEW Mannheim)

  • Anja Kuckulenz

    ()
    (ZEW Mannheim)

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    Abstract

    This paper considers training, mobility decisions and wages together to test for the specificity of human capital contained in continuing training courses. We empirically analyse the relationship between training, mobility and wages in two ways. First, we examine the correlation between training and mobility. In a second step, we consider wage effects of mobility taking training participation into account. First, we find that training participation is negatively correlated with the mobility decision and that training participation decreases the probability of individuals to change the job. Second, we find that wages are lower for job changers for the group of training participants, so wages decrease when trained individuals are mobile. Finally, training participation negatively affects the individuals’s subjective valuation of the quality of their last job change. Taken together, these results suggest that there is some specific human capital, which is incorporated into training and lost when moving between jobs.

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    Bibliographic Info

    Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

    Volume (Year): 226 (2006)
    Issue (Month): 1 (January)
    Pages: 55-81

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    Handle: RePEc:jns:jbstat:v:226:y:2006:i:1:p:55-81

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    Related research

    Keywords: Training; mobility; wages; search; job matching;

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    References

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    1. Gerfin, Michael, 2004. "Firm-Sponsored General Training in Frictional Labour Markets: An Empirical Analysis for Switzerland," IZA Discussion Papers 1077, Institute for the Study of Labor (IZA).
    2. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
    3. Josef Zweimüller & Rudolf Winter-Ebmer, 2003. "On-the-job-training, job search and job mobility," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 139(IV), pages 563-576, December.
    4. Jörn-Steffen Pischke, 2001. "Continuous training in Germany," Journal of Population Economics, Springer, vol. 14(3), pages 523-548.
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    8. Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 142-71, January.
    9. Hendrik Jürges & Kerstin Schneider, 2005. "Dynamische Lohneffekte beruflicher Weiterbildung," MEA discussion paper series 05092, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
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    11. Wasmer, Etienne, 2003. "Interpreting European and US Labour Market Differences: The Specificity of Human Capital Investments," CEPR Discussion Papers 3780, C.E.P.R. Discussion Papers.
    12. Alison L. Booth & Gylfi Zoega, 2004. "Is wage compression a necessary condition for firm-financed general training?," Oxford Economic Papers, Oxford University Press, vol. 56(1), pages 88-97, January.
    13. Pfeiffer, Friedhelm & Reize, Frank, 2000. "Formelle und informelle berufliche Weiterbildung und Verdienst bei Arbeitnehmern und Selbständigen," ZEW Discussion Papers 00-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    14. Walter Y. Oi, 1962. "Labor as a Quasi-Fixed Factor," Journal of Political Economy, University of Chicago Press, vol. 70, pages 538.
    15. Antel, John J, 1986. "Human Capital Investment Specialization and the Wage Effects of Voluntary Labor Mobility," The Review of Economics and Statistics, MIT Press, vol. 68(3), pages 477-83, August.
    16. Christian Holzner, 2005. "Search Frictions, Credit Constraints andFirm Financed General Training," Ifo Working Paper Series Ifo Working Paper No. 6, Ifo Institute for Economic Research at the University of Munich.
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