Advanced Search
MyIDEAS: Login to save this paper or follow this series

Wage Effects of On-the-Job Training: A Meta-Analysis

Contents:

Author Info

  • Haelermans, Carla

    ()
    (Maastricht University)

  • Borghans, Lex

    ()
    (Maastricht University)

Abstract

A meta-analysis is used to study the average wage effects of on-the-job training. This study shows that the average reported wage effect of on-the-job training, corrected for publication bias, is 2.6 per cent per course. The analyses reveal a substantial heterogeneity between training courses, while wage effects reported in studies based on instrumental variables and panel estimators are substantially lower than estimates based on techniques that do not correct for selectivity issues. Appropriate methodology and the quality of the data turn out to be crucial to determine the wage returns.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ftp.iza.org/dp6077.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6077.

as in new window
Length: 43 pages
Date of creation: Oct 2011
Date of revision:
Publication status: published in: British Journal of Industrial Relations, 2012, 50 (3), 502–528
Handle: RePEc:iza:izadps:dp6077

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: meta-analysis; on-the-job training; publication bias;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Hristos Doucouliagos & T.D. Stanley, 2008. "Publication Selection Bias in Minimum-Wage Research? A Meta-Regression Analysis," Economics Series 2008_14, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  2. Cohen Goldner, Sarit & Eckstein, Zvi, 2004. "Estimating the Return to Training and Occupational Experience: The Case of Female Immigrants," IZA Discussion Papers 1225, Institute for the Study of Labor (IZA).
  3. Groot, Wim, 1995. "The Wage Effects of Investments in Enterprise-Related Training," Empirical Economics, Springer, Springer, vol. 20(1), pages 133-47.
  4. Leon Feinstein & Fernando Galindo-Rueda & Anna Vignoles, 2004. "The labour market impact of adult education and training: a cohort analysis," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 19470, London School of Economics and Political Science, LSE Library.
  5. Pereira, Pedro T. & Martins, Pedro S., 2001. "Returns to Education and Wage Equations," IZA Discussion Papers 298, Institute for the Study of Labor (IZA).
  6. Xiao, Jin, 2002. "Determinants of salary growth in Shenzhen, China: an analysis of formal education, on-the-job training, and adult education with a three-level model," Economics of Education Review, Elsevier, Elsevier, vol. 21(6), pages 557-577, December.
  7. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 66, pages 281.
  8. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2007. "The effects of competition and equal treatment laws on gender wage differentials," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 22, pages 235-287, 04.
  9. David H. Greenberg & Charles Michalopoulos & Philip K. Robin, 2006. "Do experimental and nonexperimental evaluations give different answers about the effectiveness of government-funded training programs?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(3), pages 523-552.
  10. T.D Stanley & Hristos Doucouliagos, 2007. "Identifying and Correcting Publication Selection Bias in the Efficiency-Wage Literature: Heckman Meta-Regression," Economics Series 2007_11, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  11. Chris Doucouliagos & Patrice Laroche, 2007. "Unions and Profitability: A Meta-Analysis," Economics Series 2007_01, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  12. Krueger, Alan & Rouse, Cecilia, 1998. "The Effect of Workplace Education on Earnings, Turnover, and Job Performance," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 16(1), pages 61-94, January.
  13. Bassanini, Andrea & Brunello, Giorgio, 2008. "Is training more frequent when the wage premium is smaller? Evidence from the European Community Household Panel," Labour Economics, Elsevier, Elsevier, vol. 15(2), pages 272-290, April.
  14. Johannes Van Biesebroeck, 2007. "Wage and Productivity Premiums in Sub-Saharan Africa," Working Papers tecipa-291, University of Toronto, Department of Economics.
  15. Elizabeth T. Hill, 1995. "Labor market effects of women's post-school-age training," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(1), pages 138-149, October.
  16. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2003. "A meta-analysis of the international gender wage gap," Economics working papers, Department of Economics, Johannes Kepler University Linz, Austria 2003-11, Department of Economics, Johannes Kepler University Linz, Austria.
  17. De Beyer, Joy, 1990. "The incidence and impact on earnings of formal training provided by enterprises in Kenya and Tanzania," Economics of Education Review, Elsevier, Elsevier, vol. 9(4), pages 321-330, December.
  18. Lorraine Dearden & Howard Reed & John Van Reenen, 2006. "The Impact of Training on Productivity and Wages: Evidence from British Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 397-421, 08.
  19. Godius Kahyarara & Francis Teal, 2008. "The returns to vocational training and academic education: Evidence from Tanzania," CSAE Working Paper Series 2008-07, Centre for the Study of African Economies, University of Oxford.
  20. Barrett, Alan & O'Connell, Philip J., 1999. "Does Training Generally Work? The Returns to In-Company Training," IZA Discussion Papers 51, Institute for the Study of Labor (IZA).
  21. Mark A. Loewenstein & James R. Spletzer, 1997. "Delayed formal on-the-job training," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(1), pages 82-99, October.
  22. Francis Teal & Godius Kahyarara, 2008. "The returns to vocational training and academic education: Evidence from Tanzania," Economics Series Working Papers WPS/2008-07, University of Oxford, Department of Economics.
  23. David H. Greenberg & Charles Michalopoulos & Philip K. Robins, 2003. "A meta-analysis of government-sponsored training programs," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(1), pages 31-53, October.
  24. Edwin Leuven & Hessel Oosterbeek, 2002. "Evaluating the effect of tax deductions on training," Labor and Demography, EconWPA 0205001, EconWPA.
  25. Arriagada, Ana-Maria, 1990. "Labor market outcomes of non-formal training for male and female workers in Peru," Economics of Education Review, Elsevier, Elsevier, vol. 9(4), pages 331-342, December.
  26. Rosholm, Michael & Nielsen, Helena Skyt & Dabalen, Andrew, 2007. "Evaluation of training in African enterprises," Journal of Development Economics, Elsevier, Elsevier, vol. 84(1), pages 310-329, September.
  27. John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, W.E. Upjohn Institute for Employment Research, number ojt.
  28. Ashenfelter, O. & Harmon, C. & Oosterbeek, H., 1999. "A Review of Estimates of the Schooling/ Earnings Relationship, with tests for Publication Bias," Papers, College Dublin, Department of Political Economy- 99/20, College Dublin, Department of Political Economy-.
  29. Budría, Santiago & Pereira, Pedro T., 2004. "On the Returns to Training in Portugal," IZA Discussion Papers 1429, Institute for the Study of Labor (IZA).
  30. Laroche, P., 2000. "What do Unions do to Productivity? A Meta-Analysis," Papers, Groupe de recherche en économie financière et en gestion des entreprises, Universite Nancy 2 2000-5, Groupe de recherche en économie financière et en gestion des entreprises, Universite Nancy 2.
  31. Alison L. Booth & Marco Francesconi & Gylfi Zoega, 2003. "Unions, work-related training, and wages: Evidence for British men," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(1), pages 68-91, October.
  32. Dave E. Marcotte, 2000. "Continuing education, job training, and the growth of earnings inequality," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(4), pages 602-623, July.
  33. Arulampalam, Wiji & Booth, Alison L, 2001. "Learning and Earning: Do Multiple Training Events Pay? A Decade of Evidence from a Cohort of Young British Men," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 68(271), pages 379-400, August.
  34. David M. Blau & Philip K. Robins, 1987. "Training Programs and Wages: A General Equilibrium Analysis of the Effects of Program Size," Journal of Human Resources, University of Wisconsin Press, vol. 22(1), pages 113-125.
  35. Alison L. Booth & Mark L. Bryan, 2005. "Testing Some Predictions of Human Capital Theory: New Training Evidence from Britain," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 391-394, May.
  36. Metcalfe, Renuka & Sloane, Peter J., 2007. "Human Capital Spillovers and Economic Performance in the Workplace in 2004: Some British Evidence," IZA Discussion Papers 2774, Institute for the Study of Labor (IZA).
  37. Melero Martín, Eduardo, 2004. "Evidence on Training and Career Paths: Human Capital, Information and Incentives," IZA Discussion Papers 1377, Institute for the Study of Labor (IZA).
  38. Conti, Gabriella, 2005. "Training, productivity and wages in Italy," Labour Economics, Elsevier, Elsevier, vol. 12(4), pages 557-576, August.
  39. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 75, pages 352.
  40. Maria Abreu Henri L. F. de Groot & Raymond J. G. M. Florax, 2005. "A Meta-Analysis of β-Convergence: the Legendary 2%," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 19(3), pages 389-420, 07.
  41. Salas-Velasco, Manuel, 2009. "Beyond lectures and tutorials: Formal on-the-job training received by young European university graduates," Research in Economics, Elsevier, Elsevier, vol. 63(3), pages 200-211, September.
  42. Wim Groot, 1999. "Productivity effects of enterprise-related training," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 6(6), pages 369-371.
  43. Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, Elsevier, vol. 19(2), pages 149-158, April.
  44. Mark A. Loewenstein & James R. Spletzer, 1999. "General and Specific Training: Evidence and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 34(4), pages 710-733.
  45. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, Econometric Society, vol. 45(1), pages 1-22, January.
  46. Tan, Hong & Savchenko, Yevgeniya & Gimpelson, Vladimir & Kapelyushnikov, Rostislav & Lukyanova, Anna, 2007. "Skills shortages and training in Russian enterprises," Policy Research Working Paper Series 4222, The World Bank.
  47. Fredland, J. Eric & Little, Roger D., 1981. "Self-employed workers: Returns to education and training," Economics of Education Review, Elsevier, Elsevier, vol. 1(3), pages 315-337, June.
  48. Harley Frazis & Mark A Loewenstein, 2006. "Wage Compression and the Division of Returns to Productivity Growth: Evidence from EOPP," Working Papers, U.S. Bureau of Labor Statistics 398, U.S. Bureau of Labor Statistics.
  49. Jenifer Hamil-Luker, 2005. "Women's Wages: Cohort Differences in Returns to Education and Training Over Time," Social Science Quarterly, Southwestern Social Science Association, vol. 86(s1), pages 1261-1278.
  50. Kuckulenz, Anja & Zwick, Thomas, 2003. "The Impact of Training on Earnings: Differences Between Participant Groups and Training Forms," ZEW Discussion Papers 03-57, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  51. Pål Schøne, 2004. "Firm-financed training: Firm-specific or general skills?," Empirical Economics, Springer, Springer, vol. 29(4), pages 885-900, December.
  52. Edwin Leuven & Hessel Oosterbeek, 2008. "An alternative approach to estimate the wage returns to private-sector training," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 23(4), pages 423-434.
  53. Almeida-Santos, Filipe & Chzhen, Yekaterina & Mumford, Karen A., 2010. "Employee Training and Wage Dispersion: White and Blue Collar Workers in Britain," IZA Discussion Papers 4821, Institute for the Study of Labor (IZA).
  54. Yoko Yoshida & Michael R. Smith, 2005. "Training and the Earnings of Immigrant Males: Evidence from the "Canadian Workplace and Employee Survey"," Social Science Quarterly, Southwestern Social Science Association, vol. 86(s1), pages 1218-1241.
  55. Booth, Alison L, 1991. "Job-Related Formal Training: Who Receives It and What Is It Worth?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(3), pages 281-94, August.
  56. John Gibson, 2003. "Do Lower Expected Wage Benefits Explain Ethnic Gaps In Job- Related Training? Evidence From New Zealand," Labor and Demography, EconWPA 0310004, EconWPA.
  57. Thomas J. Steichen, 2001. "Nonparametric trim and fill analysis of publication bias in meta-analysis," Stata Technical Bulletin, StataCorp LP, StataCorp LP, vol. 10(57).
  58. Gielen, A. C., 2007. "Performance Pay, Training and Labor Mobility," Discussion Paper, Tilburg University, Center for Economic Research 2007-48, Tilburg University, Center for Economic Research.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Almeida, Rita K. & de Faria, Marta Lince, 2014. "The Wage Returns to On-the-Job Training: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 8314, Institute for the Study of Labor (IZA).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6077. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.