IDEAS home Printed from https://ideas.repec.org/a/spr/izalpo/v4y2015i1p1-2510.1186-s40173-015-0035-8.html
   My bibliography  Save this article

Wage returns to mid-career investments in job training through employer supported course enrollment: evidence for Canada

Author

Listed:
  • Wen Ci

    ()

  • Jose Galdo

    ()

  • Marcel Voia

    ()

  • Christopher Worswick

    ()

Abstract

Using longitudinal data for Canada, we analyze the incidence and wage returns to employer supported course enrollment for men and women. Availability of confidential data, along with a relatively rich set of observable covariates, lead us to the estimation of difference-in-differences matching models of the effect of employer supported course enrolment on wages. The estimated average treatment effects on the treated range from 5.5 to 7.2 percent for men and 7.1 to 9.0 for women. While high-skilled workers show disproportionately higher rates of participation in employer-supported training, we observe no wage premiums for these types of workers. Statistically significant positive wage returns are found, on the other hand, for low-skilled workers. JEL codes: C14, I20, J24, J31, M53 Copyright Ci et al.; licensee Springer. 2015

Suggested Citation

  • Wen Ci & Jose Galdo & Marcel Voia & Christopher Worswick, 2015. "Wage returns to mid-career investments in job training through employer supported course enrollment: evidence for Canada," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-25, December.
  • Handle: RePEc:spr:izalpo:v:4:y:2015:i:1:p:1-25:10.1186/s40173-015-0035-8
    DOI: 10.1186/s40173-015-0035-8
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1186/s40173-015-0035-8
    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 below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    3. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    4. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
    5. Almeida, Rita & Carneiro, Pedro, 2009. "The return to firm investments in human capital," Labour Economics, Elsevier, vol. 16(1), pages 97-106, January.
    6. David Card & Thomas Lemieux, 2001. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 705-746.
    7. Julie Turcotte & Lori Whewell Rennison, 2004. "The Link between Technology Use, Human Capital, Productivity and Wages: Firm-level Evidence," International Productivity Monitor, Centre for the Study of Living Standards, vol. 9, pages 25-36, Fall.
    8. Daniel Parent, 2003. "Employer-supported training in Canada and its impact on mobility and wages," Empirical Economics, Springer, vol. 28(3), pages 431-459, July.
    9. Richard Blundell & Lorraine Dearden & Costas Meghir & Barbara Sianesi, 1999. "Human capital investment: the returns from education and training to the individual, the firm and the economy," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 1-23, March.
    10. Nathalie Havet, 2006. "La valorisation salariale et professionnelle de la formation en entreprise diffère-t-elle selon le sexe ? L'exemple canadien," Économie et Prévision, Programme National Persée, vol. 175(4), pages 147-161.
    11. Benoit Dostie, 2013. "Estimating the Returns to Firm-Sponsored On-the-Job and Classroom Training," Journal of Human Capital, University of Chicago Press, vol. 7(2), pages 161-189.
    12. Benoit Dostie & Pierre Thomas Léger, 2014. "Firm-Sponsored Classroom Training: Is It Worth It for Older Workers?," Canadian Public Policy, University of Toronto Press, vol. 40(4), pages 377-390, December.
    13. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    14. repec:adr:anecst:y:2008:i:91-92:p:10 is not listed on IDEAS
    15. Galdo, Jose & Chong, Alberto, 2012. "Does the quality of public-sponsored training programs matter? Evidence from bidding processes data," Labour Economics, Elsevier, vol. 19(6), pages 970-986.
    16. Harley Frazis & Mark A. Loewenstein, 2005. "Reexamining the Returns to Training: Functional Form, Magnitude, and Interpretation," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
    17. Guido W. Imbens, 2015. "Matching Methods in Practice: Three Examples," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 373-419.
    18. Palameta, Boris & Zhang, Xuelin, 2006. "Participation in Adult Schooling and Its Earnings Impact in Canada," Analytical Studies Branch Research Paper Series 2006276e, Statistics Canada, Analytical Studies Branch.
    19. Hui, Taylor Shek-wai & Smith, Jeffrey A., 2002. "The Determinants of Participation in Adult Education and Training in Canada," MPRA Paper 17998, University Library of Munich, Germany.
    20. 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, November.
    21. Paul Beaudry & David Green, 1998. "What is Driving US and Canadian Wages: Exogenous Technical Change or Endogenous Choice of Technique?," NBER Working Papers 6853, National Bureau of Economic Research, Inc.
    22. Jose C. Galdo & Jeffrey Smith & Dan Black, 2008. "Bandwidth Selection and the Estimation of Treatment Effects with Unbalanced Data," Annals of Economics and Statistics, GENES, issue 91-92, pages 189-216.
    23. Jochen Kluve & Hilmar Schneider & Arne Uhlendorff & Zhong Zhao, 2012. "Evaluating continuous training programmes by using the generalized propensity score," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 175(2), pages 587-617, April.
    24. Palameta, Boris & Zhang, Xuelin, 2006. "Summary Of: Participation in Adult Schooling and Its Earnings Impact in Canada," Analytical Studies Branch Research Paper Series 2006277e, Statistics Canada, Analytical Studies Branch.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Return to adult training; Employer supported course enrollment; Difference-in-differences models; Propensity score matching;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • 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
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:izalpo:v:4:y:2015:i:1:p:1-25:10.1186/s40173-015-0035-8. 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: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.