Career Progression and Formal versus On the Job Training
Abstract
We model the choice of individuals to follow or not apprenticeship training and their subsequent career. We use German administrative data, which records education, labour market transitions and wages to estimate a dynamic discrete choice model of training choice, employment and wage growth. The model allows for returns to experience and tenure, match specific effects, job mobility and search frictions. We show how apprenticeship training affects labour market careers and we quantify its benefits, relative to the overall costs. We then use our model to show how two welfare reforms change life-cycle decisions and human capital accumulation: One is the introduction of an Earned Income Tax Credit in Germany, and the other is a reform to Unemployment Insurance. In both reforms we find very significant impacts of the policy on training choices and on the value of realized matches, demonstrating the importance of considering such longer term implications.(This abstract was borrowed from another version of this item.)
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Bibliographic Info
Paper provided by Society for Economic Dynamics in its series 2005 Meeting Papers with number 141.Length:
Date of creation: 2005
Date of revision:
Handle: RePEc:red:sed005:141
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Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
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Related research
Keywords: Educational decision; apprenticeship; dynamic choice; evaluation;Other versions of this item:
- Adda, Jérôme & Dustmann, Christian & Meghir, Costas & Robin, Jean-Marc, 2006. "Career Progression and Formal versus On-the-Job Training," IZA Discussion Papers 2260, Institute for the Study of Labor (IZA).
- Adda & Dustmann, 2004. "Career Progression and Formal versus on the Job Training," Econometric Society 2004 North American Winter Meetings 492, Econometric Society.
- Jerome Adda & Christian Dustmann & Costas Meghir & Jean-Marc Robin, 2006. "Career progression and formal versus on-the-job training," IFS Working Papers W06/16, Institute for Fiscal Studies.
- Jerome Adda & Christian Dustmann & Costas Meghir & Jean-Marc Robin, 2010. "Career progression and formal versus on-the-job training," IFS Working Papers W10/13, Institute for Fiscal Studies.
- Adda, Jerome & Dustmann, Christian & Meghir, Costas & Robin, Jean-Marc, 2007. "Career Progression and Formal versus On-the-Job Training," CEPR Discussion Papers 6087, C.E.P.R. Discussion Papers.
- Jerome Adda & Christian Dustmann & Costas Meghir & Jean-Marc Robin, 2009. "Career progression and formal versus on-the-job training," IFS Working Papers W09/06, Institute for Fiscal Studies.
- I2 - Health, Education, and Welfare - - Education
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
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