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Costs and Revenues of Investment in Enterprise-Related Schooling


  • Groot, Wim
  • Hartog, Joop
  • Oosterbeek, Hessel


In this paper, a general specification of the wage equation is used to derive a marginal revenue equation for enterprise-related schooling. The optimal amount of investment in enterprise-related schooling is found by equating the marginal revenues and marginal costs. For the empirical analysis, the wage equation, the marginal costs equation, and the marginal revenue equation are estimated simultaneously. The empirical results show that both the marginal cost and the marginal benefits of training vary with a worker's level of ability. For a reference male who participates in enterprise-related schooling, the wage increase is about 34 percent of the average wage rate of participants. Copyright 1994 by Royal Economic Society.

Suggested Citation

  • Groot, Wim & Hartog, Joop & Oosterbeek, Hessel, 1994. "Costs and Revenues of Investment in Enterprise-Related Schooling," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 658-675, October.
  • Handle: RePEc:oup:oxecpp:v:46:y:1994:i:4:p:658-75

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    Cited by:

    1. Klaus Waelde, 1996. "Lifetime learning, biased technological change and the evolution of wages in the U.S. 1960 - 1990," Labor and Demography 9601001, University Library of Munich, Germany.
    2. Kazamaki Ottersten, Eugenia & Lindh, Thomas & Mellander, Erik, 1996. "Cost and Productivity Effects of Firm Financed Training," Working Paper Series 455, Research Institute of Industrial Economics.

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