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Continuous training and wages: An empirical analysis using a comparison-group approach

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  • Görlitz, Katja

Abstract

Using German linked employer-employee data, this paper investigates the short-term impact of on-the-job training on wages. The applied estimation approach was first introduced by Leuven and Oosterbeek (2008). Wages of employees who intended to participate in training but did not do so because of a random event are compared to wages of training participants. The estimated wage returns are statistically insignificant. Furthermore, the decision to participate in training is associated with sizeable selection effects. On average, participants have a wage advantage of more than 4% compared to non-participants.

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  • Görlitz, Katja, 2011. "Continuous training and wages: An empirical analysis using a comparison-group approach," Economics of Education Review, Elsevier, vol. 30(4), pages 691-701, August.
  • Handle: RePEc:eee:ecoedu:v:30:y:2011:i:4:p:691-701
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    Cited by:

    1. Picchio, Matteo & van Ours, Jan C., 2013. "Retaining through training even for older workers," Economics of Education Review, Elsevier, vol. 32(C), pages 29-48.
    2. Görlitz, Katja & Tamm, Marcus, 2017. "Information, financial aid and training participation: Evidence from a randomized field experiment," Labour Economics, Elsevier, vol. 47(C), pages 138-148.
    3. Christiane Hinerasky, 2014. "Advances in Training Evaluation - Psychological, Educational, Economic, and Econometric Perspectives on the Kirkpatrick Model," Working Papers Dissertations 14, Paderborn University, Faculty of Business Administration and Economics.
    4. Görlitz, Katja & Rzepka, Sylvi, 2014. "Does regional training supply determine employees' training participation?," Discussion Papers 2014/9, Free University Berlin, School of Business & Economics.
    5. Görlitz, Katja & Tamm, Marcus, 2011. "Revisiting the Complementarity between Education and Training – The Role of Personality, Working Tasks and Firm Effects," Ruhr Economic Papers 307, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Daniel Dietz & Thomas Zwick, 2016. "The retention effect of training – portability, visibility, and credibility," Economics of Education Working Paper Series 0113, University of Zurich, Department of Business Administration (IBW).
    7. Görlitz, Katja & Tamm, Marcus, 2015. "The Pecuniary and Non-Pecuniary Returns to Voucher-Financed Training," IZA Discussion Papers 8990, Institute for the Study of Labor (IZA).
    8. Claudia Burgard & Katja Görlitz, 2011. "Continuous Training, Job Satisfaction and Gender – An Empirical Analysis Using German Panel Data," Ruhr Economic Papers 0265, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    9. repec:zbw:rwirep:0265 is not listed on IDEAS
    10. Ricardo Pagán-Rodríguez, 2015. "Disability, Training and Job Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 122(3), pages 865-885, July.
    11. Christiane Hinerasky & Rene Fahr & Sabine Simons, 2014. "Wage Returns of Company Training - Evidence from a Comparison Group Approach," Working Papers Dissertations 17, Paderborn University, Faculty of Business Administration and Economics.

    More about this item

    Keywords

    Continuous training Wage returns Selection effect;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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