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Minimum Wages, On-the-Job Training, and Wage Growth

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Author Info
Adam J. Grossberg
Paul Sicilian

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Abstract

Using data from the Employment Opportunities Pilot Project, we examine the relationships between minimum wages, wage growth, and on-the-job training. We find that minimum wage jobs exhibit less wage growth than other jobs, particularly for men. We find no evidence, however, of a unique minimum wage effect on training opportunities. We conclude that indirect methods of proxying training with wage growth can be misleading as they fail to distinguish whether the reduced wage growth of workers on minimum wage jobs results from their receiving less training than other workers or whether it is strictly a result of the wage determination process.

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Publisher Info
Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 65 (1999)
Issue (Month): 3 (January)
Pages: 539-556
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Handle: RePEc:sej:ancoec:v:65:3:y:1999:p:539-556

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  1. Alison Booth & Mark L. Bryan, 2006. "Training, Minimum Wages and the Earnings Distribution," CEPR Discussion Papers 537, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  2. Bassanini, Andrea & Brunello, Giorgio, 2003. "Is Training More Frequent When Wage Compression Is Higher? Evidence from the European Community Household Panel," IZA Discussion Papers 839, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Cardoso, Ana Rute, 2009. "Long-Term Impact of Youth Minimum Wages: Evidence from Two Decades of Individual Longitudinal Data," IZA Discussion Papers 4236, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Grip Andries de, 2006. "Evaluating Human Capital Obsolescence," Working Papers 001, Maastricht : ROA,Research Centre for Education and the Labour Market. [Downloadable!]
  5. Rita Asplund, 2004. "The Provision and Effects of Company Training. A brief review of the literature," Discussion Papers 907, The Research Institute of the Finnish Economy. [Downloadable!]
  6. Felipe Balmaceda, 2008. "Firm-Provided Training and Labor Market Policies," Documentos de Trabajo 252, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  7. repec:ese:iserwp: is not listed on IDEAS
  8. Neumark, David & Nizalova, Olena, 2004. "Minimum Wage Effects in the Longer Run," IZA Discussion Papers 1428, Institute for the Study of Labor (IZA). [Downloadable!]
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  9. Ericson, Thomas, 2004. "Personnel training: a theoretical and empirical review," Working Paper Series 2005:1, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  10. William E. Even & David A. Macpherson, 2004. "The Wage and Employment Dynamics of Minimum Wage Workers," Labor and Demography 0404007, EconWPA. [Downloadable!]
    Other versions:
  11. Andrea Bassanini & Giorgio Brunello, 2008. "Is training more frequent when the wage premium is smaller? Evidence from the European Community Household Panel," Post-Print halshs-00214192_v1, HAL. [Downloadable!]
    Other versions:
  12. David Fairris & Roberto Pedace, 2003. "The Impact of Minimum Wages on Job Training: An Empirical Exploration with Establishment Data," Working Papers 03-04, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  13. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2002. "Work-Related Training and the New National Minimum Wage in Britain," IZA Discussion Papers 595, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  14. Dustmann; Christian & Schönberg, Uta, 2004. "Training and Union Wages," IZA Discussion Papers 1435, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  15. Acemoglu, Daron & Pischke, Jörn-Steffen, 2001. "Minimum Wages and On-the-Job Training," IZA Discussion Papers 384, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  16. David Neumark & William Wascher, 1998. "Minimum Wages and Training Revisited," NBER Working Papers 6651, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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