A New Approach to estimate the Wage Returns to Work-related Training
AbstractThis paper proposes a new approach to identify the wage e ects of training.The idea is to narrow down the comparison group by only taking into consideration theworkers who wanted to participate in training but did not do so because of some randomevent. The point estimate of the return to training consistently drops when restrictingthe comparison group this way. While the OLS estimate of the return to training participationis significantly positive, this is no longer the case when we use the new comparisongroup. This outcome suggests that a large share of what is usually interpreted as returnsto training is actually the return to some unobservable characteristic. See also the article in Journal of Applied Econometrics, 2008, 23(4), 423-34.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 02-091/3.
Date of creation: 23 Sep 2002
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Other versions of this item:
- Leuven, Edwin & Oosterbeek, Hessel, 2002. "A New Approach to Estimate the Wage Returns to Work-Related Training," IZA Discussion Papers 526, Institute for the Study of Labor (IZA).
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-12-02 (All new papers)
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