Does work-related training reduce the discrepancy between function requirements and competencies?
AbstractThe issue of lifelong learning is high on the political agenda.However, despite this political interest and the large economic literature onhuman capital, the impact of work-related training on the discrepancy betweenfunction requirements and the skills of the employee has been ignored. In thispaper we use an ordered probit model to analyze the perceived change indiscrepancy. Based on the bi-annual OSA panel from 1998 till 2002 for TheNetherlands, we show that taking a work-related course decreases thediscrepancy significantly. We correct for the endogeneity between the decisionto take a course and the change in discrepancy and we argue that ignoring theselective decision to take a course leads to misleading conclusions about theeffect of these courses on the change in discrepancy.Some respondents of the OSA-panel drop out between two waves. To correct forthe possibility of selective attrition we develop an Inverse ProbabilityWeight (IPW) estimation method for the ordered probit with an endogenousbinary regressor. From the implied marginal effects of the IPW estimation weconclude that taking a course increases the probability to change the fitbetween skills and function requirements from Bad to Good with16~percent-point.
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Bibliographic InfoPaper provided by Erasmus University Rotterdam, Econometric Institute in its series Econometric Institute Report with number EI 2005-42.
Date of creation: 07 Nov 2005
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Web page: http://www.few.eur.nl/few
endogenous regressor; inverse probability weighting; ordered probit; work-related training;
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