IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

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

  • Carla Haelermans
  • Lex Borghans

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.

(This abstract was borrowed from another version of this item.)

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://hdl.handle.net/10.1111/j.1467-8543.2012.00890.x
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by London School of Economics in its journal British Journal of Industrial Relations.

Volume (Year): 50 (2012)
Issue (Month): 3 (09)
Pages: 502-528

as
in new window

Handle: RePEc:bla:brjirl:v:50:y:2012:i:3:p:502-528
Contact details of provider: Postal: Houghton Street, London WC2A 2AE
Phone: +44 (020) 7405 7686
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0007-1080

More information through EDIRC

Order Information: Web: http://www.blackwellpublishing.com/subs.asp?ref=0007-1080

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. Alan Barrett & Philip J. O'Connell, 2001. "Does training generally work? The returns to in-company training," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(3), pages 647-662, April.
  2. 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.
  3. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2005. "A Meta-Analysis of the International Gender Wage Gap," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 479-511, 07.
  4. 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.
  5. 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.
  6. Johannes Van Biesebroeck, 2007. "Wage and Productivity Premiums in Sub-Saharan Africa," Working Papers tecipa-291, University of Toronto, Department of Economics.
  7. Lorraine Dearden & Howard Reed & John Van Reenen, 2005. "The impact of training on productivity and wages : evidence from British panel data," Economic History Working Papers 779, London School of Economics and Political Science, Department of Economic History.
  8. Gielen, Anne C., 2007. "Performance Pay, Training and Labor Mobility," IZA Discussion Papers 2932, Institute for the Study of Labor (IZA).
  9. Kahyarara, Godius & Teal, Francis, 2008. "The Returns to Vocational Training and Academic Education: Evidence from Tanzania," World Development, Elsevier, vol. 36(11), pages 2223-2242, November.
  10. 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.
  11. Thomas J. Steichen, 2001. "Nonparametric trim and fill analysis of publication bias in meta-analysis," Stata Technical Bulletin, StataCorp LP, vol. 10(57).
  12. Orley Ashenfelter & Colm Harmon & Hessel Oosterbeek, 2000. "A Review of Estimates of the Schooling/Earnings Relationship, with Tests for Publication Bias," NBER Working Papers 7457, National Bureau of Economic Research, Inc.
  13. Cohen-Goldner, Sarit & Eckstein, Zvi, 2004. "Estimating the Return to Training and Occupational Experience: The Case of Female Immigrants," CEPR Discussion Papers 4603, C.E.P.R. Discussion Papers.
  14. 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.
  15. Laroche, P., 2000. "What do Unions do to Productivity? A Meta-Analysis," Papers 2000-5, Groupe de recherche en économie financière et en gestion des entreprises, Universite Nancy 2.
  16. Krueger, Alan & Rouse, Cecilia, 1998. "The Effect of Workplace Education on Earnings, Turnover, and Job Performance," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 61-94, January.
  17. 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.
  18. Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, vol. 19(2), pages 149-158, April.
  19. Fredland, J. Eric & Little, Roger D., 1981. "Self-employed workers: Returns to education and training," Economics of Education Review, Elsevier, vol. 1(3), pages 315-337, June.
  20. 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.
  21. Salas-Velasco, Manuel, 2009. "Beyond lectures and tutorials: Formal on-the-job training received by young European university graduates," Research in Economics, Elsevier, vol. 63(3), pages 200-211, September.
  22. Hristos Doucouliagos & T. D. Stanley, 2009. "Publication Selection Bias in Minimum-Wage Research? A Meta-Regression Analysis," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 406-428, 06.
  23. 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.
  24. 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, vol. 68(271), pages 379-400, August.
  25. Alison L. Booth & Marco Francesconi & Gylfi Zoega, 2003. "Unions, Work-Related Training, and Wages: Evidence for British Men," ILR Review, Cornell University, ILR School, vol. 57(1), pages 68-91, October.
  26. 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.
  27. Andrea Bassanini & Giorgio Brunello, 2008. "Is training more frequent when the wage premium is smaller? Evidence from the European Community Household Panel," Post-Print halshs-00214192, HAL.
  28. Anna Vignoles & Fernando Galindo-Rueda & Leon Feinstein, 2004. "The Labour Market Impact of Adult Education and Training: A Cohort Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(2), pages 266-280, 05.
  29. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
  30. 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.
  31. 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, vol. 21(6), pages 557-577, December.
  32. Edwin Leuven & Hessel Oosterbeek, 2004. "Evaluating the Effect of Tax Deductions on Training," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 461-488, April.
  33. Harley Frazis & Mark A Loewenstein, 2006. "Wage Compression and the Division of Returns to Productivity Growth: Evidence from EOPP," Working Papers 398, U.S. Bureau of Labor Statistics.
  34. 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).
  35. David H. Greenberg & Charles Michalopoulos & Philip K. Robins, 2003. "A Meta-Analysis of Government-Sponsored Training Programs," ILR Review, Cornell University, ILR School, vol. 57(1), pages 31-53, October.
  36. Pål Schøne, 2004. "Firm-financed training: Firm-specific or general skills?," Empirical Economics, Springer, vol. 29(4), pages 885-900, December.
  37. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January.
  38. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2007. "The effects of competition and equal treatment laws on gender wage differentials," Economic Policy, CEPR;CES;MSH, vol. 22, pages 235-287, 04.
  39. Pedro Telhado Pereira & Pedro Silva Martins, 2004. "Returns to education and wage equations," Applied Economics, Taylor & Francis Journals, vol. 36(6), pages 525-531.
  40. 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.
  41. 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, number ojt, March.
  42. 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.
  43. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
  44. 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, vol. 9(4), pages 321-330, December.
  45. 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, vol. 15(2), pages 272-290, April.
  46. 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, vol. 19(3), pages 389-420, 07.
  47. Groot, Wim, 1995. "The Wage Effects of Investments in Enterprise-Related Training," Empirical Economics, Springer, vol. 20(1), pages 133-47.
  48. John Gibson, 2003. "Do Lower Expected Wage Benefits Explain Ethnic Gaps In Job- Related Training? Evidence From New Zealand," Labor and Demography 0310004, EconWPA.
  49. 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.
  50. 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.
  51. Budría, Santiago & Pereira, Pedro T., 2004. "On the Returns to Training in Portugal," IZA Discussion Papers 1429, Institute for the Study of Labor (IZA).
  52. repec:dgr:kubcen:200748 is not listed on IDEAS
  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. 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).
  55. Wim Groot, 1999. "Productivity effects of enterprise-related training," Applied Economics Letters, Taylor & Francis Journals, vol. 6(6), pages 369-371.
  56. Arriagada, Ana-Maria, 1990. "Labor market outcomes of non-formal training for male and female workers in Peru," Economics of Education Review, Elsevier, vol. 9(4), pages 331-342, December.
  57. 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.
  58. Conti, Gabriella, 2005. "Training, productivity and wages in Italy," Labour Economics, Elsevier, vol. 12(4), pages 557-576, August.
  59. 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., vol. 23(4), pages 423-434.
  60. Rosholm, Michael & Nielsen, Helena Skyt & Dabalen, Andrew, 2007. "Evaluation of training in African enterprises," Journal of Development Economics, Elsevier, vol. 84(1), pages 310-329, September.
Full references (including those not matched with items on IDEAS)

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

When requesting a correction, please mention this item's handle: RePEc:bla:brjirl:v:50:y:2012:i:3:p:502-528. 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: (Wiley-Blackwell Digital Licensing)

or (Christopher F. Baum)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.