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Heterogeneous Returns to Training in Personal Services

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Author Info
Thomas Zwick () (Centre for European Economic Research)
Anja Kuckulenz () (Centre for European Economic Research)

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Abstract

Using the "Qualification" and Career Survey�, 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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Publisher Info
Paper 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.

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Length: 21 pages
Date of creation: 10 May 2004
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Handle: RePEc:knz:hetero:0412

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Related research
Keywords: Continuing training ; returns to training ; endogeneity ; employee heterogeneity ; training forms ; personal services sector;

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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
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

References listed on IDEAS
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  1. Daron Acemoglu & Joern-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," Working papers 98-12, Massachusetts Institute of Technology (MIT), Department of Economics.
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  2. Jörn-Steffen Pischke, 2001. "Continuous training in Germany," Journal of Population Economics, Springer, vol. 14(3), pages 523-548. [Downloadable!] (restricted)
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  3. Goux, Dominique & Maurin, Eric, 2000. "Returns to firm-provided training: evidence from French worker-firm matched data1," Labour Economics, Elsevier, vol. 7(1), pages 1-19, January. [Downloadable!] (restricted)
  4. Lynch, Lisa M, 1992. "Private-Sector Training and the Earnings of Young Workers," American Economic Review, American Economic Association, vol. 82(1), pages 299-312, March.
  5. Anja Kuckulenz & Thomas Zwick, 2003. "The Impact of Training on Earnings : differences between Participant Groups and Training Forms," Working Papers of the Research Group Heterogenous Labor 03-06, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim. [Downloadable!]
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  6. Heckman, James J. & Lochner, Lance J. & Todd, Petra E., 2003. "Fifty Years of Mincer Earnings Regressions," IZA Discussion Papers 775, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Z, Griliches ; Jacques Mairesse, . "Production Functions : The Search for Identification," Working Papers 97-30, Centre de Recherche en Economie et Statistique. [Downloadable!]
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  8. James J. Heckman, 1999. "Policies to Foster Human Capital," NBER Working Papers 7288, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier. [Downloadable!] (restricted)
  10. Booth, Alison L. & Francesconi, Marco & Zoega, Gylfi, 2003. "Unions, Work-Related Training, and Wages: Evidence for British Men," IZA Discussion Papers 737, Institute for the Study of Labor (IZA). [Downloadable!]
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  11. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February. [Downloadable!] (restricted)
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  12. David Card, 2000. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," NBER Working Papers 7769, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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