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Sources of Training and Their Impact on Wages

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  • Jonathan R. Veum

Abstract

Using data from the National Longitudinal Survey of Youth from 1986 to 1990, the author investigates the wage impact of various sources of training—among them, company training programs, apprenticeships, business schools, vocational and technical institutes, correspondence courses, and seminars outside the workplace. Time spent in training (of whatever kind) apparently did not affect 1990 wage levels. The incidence of two kinds of training, however—company training and seminars outside work—was positively related to wage levels as well as to wage change between 1986 and 1990; that is, workers who undertook such training enjoyed higher wages than those who did not. Time spent in vocational schools was also positively associated with wage change, though not with 1990 wage levels. The other forms of training had no apparent impact on either wage levels or wage change.

Suggested Citation

  • Jonathan R. Veum, 1995. "Sources of Training and Their Impact on Wages," ILR Review, Cornell University, ILR School, vol. 48(4), pages 812-826, July.
  • Handle: RePEc:sae:ilrrev:v:48:y:1995:i:4:p:812-826
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    Cited by:

    1. Edwin Leuven & Hessel Oosterbeek, 2002. "A New Approach to estimate the Wage Returns to Work-related Training," Tinbergen Institute Discussion Papers 02-091/3, Tinbergen Institute.
    2. Christophe Muller & Christophe J. Nordman, 2017. "Wages and on-the-job training in Tunisia," Middle East Development Journal, Taylor & Francis Journals, vol. 9(2), pages 294-318, July.
    3. Feng, Shuaizhang, 2009. "Return to Training and Establishment Size: A Reexamination of the Size-Wage Puzzle," IZA Discussion Papers 4143, Institute of Labor Economics (IZA).
    4. Grit Muehler & Michael Beckmann & Bernd Schauenberg, 2007. "The returns to continuous training in Germany: new evidence from propensity score matching estimators," Review of Managerial Science, Springer, vol. 1(3), pages 209-235, November.
    5. Mark C. Berger & John S. Earle & Klara Sabirianova, 2001. "Worker Training in a Restructuring Economy: Evidence from the Russian Transition," Book chapters authored by Upjohn Institute researchers, in: Soloman W. Polachek (ed.),Worker Wellbeing in a Changing Labor Market, pages 159-189, W.E. Upjohn Institute for Employment Research.
    6. Giorgio Brunello, 2006. "Workplace Training and Labour Market Institutions in Europe," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(04), pages 33-41, February.
    7. Nadir Khan & Muhammad Ibrahim & Muhammad Khalil Shahid, 2012. "Impact of On-Job Training on Performance of Telecommunication Industry," Journal of Social and Development Sciences, AMH International, vol. 3(2), pages 47-58.
    8. Cecilia ALBERT & Carlos GARCÍA-SERRANO & Virginia HERNANZ, 2010. "On-the-job training in Europe: Determinants and wage returns," International Labour Review, International Labour Organization, vol. 149(3), pages 315-341, September.
    9. Carmichael, Fiona & Ercolani, Marco G., 2015. "Age-training gaps across the European Union: How and why they vary across member states," The Journal of the Economics of Ageing, Elsevier, vol. 6(C), pages 163-175.
    10. 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.
    11. Hidalgo, Diana & Oosterbeek, Hessel & Webbink, Dinand, 2014. "The impact of training vouchers on low-skilled workers," Labour Economics, Elsevier, vol. 31(C), pages 117-128.
    12. Giulio Pedrini, 2017. "Law and economics of training: a taxonomy of the main legal and institutional tools addressing suboptimal investments in human capital development," European Journal of Law and Economics, Springer, vol. 43(1), pages 83-105, February.
    13. 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.
    14. repec:ces:ifodic:v:4:y:2006:i:4:p:14567440 is not listed on IDEAS
    15. Ross Miller & Masanori Hashimoto, 1997. "How Do Training And Early Labor Market Experience Affect The Economic Well-Being Of Youths?," Working Papers 009, Ohio State University, Department of Economics.
    16. C. Jeffrey Waddoups, 2014. "Union Membership and Job-Related Training: Incidence, Transferability, and Efficacy," British Journal of Industrial Relations, London School of Economics, vol. 52(4), pages 753-778, December.
    17. Hara, Hiromi, 2019. "The impact of worker-financed training: Evidence from early- and mid-career workers in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 51(C), pages 64-75.
    18. Paul Sicilian & Adam Grossberg, 2001. "Investment in human capital and gender wage differences: evidence from the NLSY," Applied Economics, Taylor & Francis Journals, vol. 33(4), pages 463-471.
    19. Einarsson, Tor & Marquis, Milton H., 1999. "Formal Training, On-the-Job Training and the Allocation of Time," Journal of Macroeconomics, Elsevier, vol. 21(3), pages 423-442, July.
    20. Jorge Merzthal & José Luis Wakabayashi & Hernán Talledo, 2017. "Capital Humano y Generación de Valor en la Empresa (Human Capital and Generation of Value in the Company)," Revista Internacional de Gestión del Conocimiento y la Tecnología (GECONTEC), Revista Internacional de Gestión del Conocimiento y la Tecnología (GECONTEC), vol. 5(2), pages 58-76, December.
    21. Inge Sieben, 2007. "Does training trigger turnover - or not?," Work, Employment & Society, British Sociological Association, vol. 21(3), pages 397-416, September.

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