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Estimating Youth Training Wage Differentials during and after Training

Author

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  • Andrews, Martyn
  • Bradley, Steve
  • Upward, Richard

Abstract

The authors compare wages between school leavers who participate in government-funded youth training and those who do not. Using a subset of all school leavers in Lancashire between 1988 and 1991, they find that wage differentials are large and negative for all types of participant when training. Once training finishes, differentials are small but still negative. There is no evidence that participants have steeper wage profiles. A ranking of lifetime wages suggests that the occupations chosen by participants may offer positive returns compared to occupations with no training. The largest impact comes at the firm level: training providers pay lower wages to both exparticipants and nonparticipants. Copyright 1999 by Royal Economic Society.

Suggested Citation

  • Andrews, Martyn & Bradley, Steve & Upward, Richard, 1999. "Estimating Youth Training Wage Differentials during and after Training," Oxford Economic Papers, Oxford University Press, vol. 51(3), pages 517-544, July.
  • Handle: RePEc:oup:oxecpp:v:51:y:1999:i:3:p:517-44
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    References listed on IDEAS

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    1. Main, Brian G M & Raffe, David, 1983. "Determinants of Employment and Unemployment among School Leavers: Evidence from the 1979 Survey of Scottish School Leavers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 30(1), pages 1-17, February.
    2. Dolton, Peter J & Makepeace, Gerald H & Treble, John G, 1994. "The Youth Training Scheme and the School-to-Work Transition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 629-657, October.
    3. Andrews, Martyn J. & Stewart, Mark B. & Swaffield, Joanna K. & Upward, Richard, 1998. "The estimation of union wage differentials and the impact of methodological choices," Labour Economics, Elsevier, vol. 5(4), pages 449-474, December.
    4. Dolton, Peter J & Makepeace, Gerald H & Treble, John G, 1994. "The Wage Effect of YTS: Evidence from YCS," Scottish Journal of Political Economy, Scottish Economic Society, vol. 41(4), pages 444-453, November.
    5. Steve Bradley, "undated". "An Empirical Analysis of Private Sector Youth Training," Working Papers ec8/95, Department of Economics, University of Lancaster.
    6. Mealli, Fabrizia & Pudney, Stephen & Thomas, Jonathan M, 1996. "Training Duration and Post-training Outcomes: A Duration-Limited Competing Risks Model," Economic Journal, Royal Economic Society, vol. 106(435), pages 422-433, March.
    7. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
    8. Hutchinson, Gillian & Church, Andrew, 1989. "Wages, Unions, the Youth Training Scheme and the Young Workers Scheme," Scottish Journal of Political Economy, Scottish Economic Society, vol. 36(2), pages 160-182, May.
    9. Andrews, Martyn & Bradley, Steve, 1997. "Modelling the Transition from School and the Demand for Training in the United Kingdom," Economica, London School of Economics and Political Science, vol. 64(255), pages 387-413, August.
    10. Cramer, J. S. & Ridder, G., 1991. "Pooling states in the multinomial logit model," Journal of Econometrics, Elsevier, vol. 47(2-3), pages 267-272, February.
    11. Lee, K. & Psaran, M.H. & Smith, R., 1995. "Growth and Convergence: A Multi-Country Empirical Analysis of the Solow Growth Model," Cambridge Working Papers in Economics 9531, Faculty of Economics, University of Cambridge.
    12. S Bradley, "undated". "The Youth Training Scheme:A Critical Review of the Evaluation Literature. Forthcoming in International Journal of Manpower," Working Papers ec12/94, Department of Economics, University of Lancaster.
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    Cited by:

    1. 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, May.
    2. Margaret Stevens, 2004. "Wage-Tenure Contracts in a Frictional Labour Market: Firms' Strategies for Recruitment and Retention," Review of Economic Studies, Oxford University Press, vol. 71(2), pages 535-551.

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