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Private Sector Training and its Impact on the Earnings of Young Workers


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  • Lisa M. Lynch


While there have been numerous studies devoted to examining the impact of governmental training programs on workers who? have experienced difficulties in the labor market, there has been remarkably little research on the actual occurrence and consequences of training provided by the private sector in the U.S .. Using data from the new National Longitudinal Survey youth cohort, this paper analyzes how personal characteristics including employment histories, and local demand conditions determine the probability of receiving training and its effect on wages and wage growth of young workers. More specifically, some of the issues addressed here include the relative importance of training and tenure for wage determination and the rate of return to company provided training compared to the rate of return to training received outside the firm and schooling. The portability of company training from employer to employer and the existence of differentials in the returns to training by union status, race and sex are also investigated.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2872.

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Date of creation: Mar 1989
Date of revision:
Publication status: published as American Economic Review, March 1992, pp. 299-312.
Handle: RePEc:nbr:nberwo:2872

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Cited by:
  1. Budría, Santiago & Pereira, Pedro T., 2008. "The Contribution of Vocational Training to Employment, Job-Related Skills and Productivity: Evidence from Madeira Island," IZA Discussion Papers 3462, Institute for the Study of Labor (IZA).
  2. Stephen E. Baldwin, 1990. "Employment futures: Reorganization, dislocation, and public policy, by Paul Osterman. New York: Oxford University Press, 1988. 207 pp. Price: $24.95 cloth," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 9(2), pages 277-279.
  3. Imbens, Guido W. & Lynch, Lisa M., 2006. "Re-Employment Probabilities over the Business Cycle," IZA Discussion Papers 2167, Institute for the Study of Labor (IZA).
  4. Lisa M. Lynch, 2004. "Development Intermediaries and the Training of Low-Wage Workers," NBER Chapters, in: Emerging Labor Market Institutions for the Twenty-First Century, pages 293-314 National Bureau of Economic Research, Inc.
  5. Ann P. Bartel, 1991. "Productivity Gains From the Implementation of Employee Training Programs," NBER Working Papers 3893, National Bureau of Economic Research, Inc.
  6. Ann P. Bartel, 1995. "Training, Wage Growth and Job Performance: Evidence From a Company Database," NBER Working Papers 4027, National Bureau of Economic Research, Inc.
  7. Ann P. Bartel, 1989. "Formal Employee Training Programs and Their Impact on Labor Produc- tivity: Evidence from a Human Resources Survey," NBER Working Papers 3026, National Bureau of Economic Research, Inc.


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