Heterogeneous Returns to Training in Personal Services
AbstractUsing the "Qualification" and Career Surveyï¿½, a rich German data set with information on 0.1 percent of all individuals employed in Germany in 1998/1999, we calculate the earnings effect of training for different "types" of employees in the personal services sector. Interacting training with all explanatory variables in the earnings equation allows us to calculate heterogeneous training returns for employees and firms with different characteristics and to estimate an unbiased average treatment effect. The correction for selection into training by using supply-side changes as external instruments leads to a decrease in the training coefficient in the personal services sector, while the coefficient increases in the entire economy. A further comparison of the results for the personal services sector with those for the entire economy reveals that, on average, employees in personal services gain less from participation in training.
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Bibliographic InfoPaper provided by Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim in its series Working Papers of the Research Group Heterogenous Labor with number 04-10.
Length: 21 pages
Date of creation: 10 May 2004
Date of revision:
Continuing training ; returns to training ; endogeneity ; employee heterogeneity ; training forms ; personal services sector;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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