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The wage effects of training in Portugal: differences across skill groups, genders, sectors and training types

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  • Santiago Budria
  • Pedro Telhado Pereira

Abstract

This article investigates the determinants and wage effects of training in Portugal. In a first stage, we show that there are considerable differences in training participation across groups of workers, with elder and low educated individuals participating substantially less. In a second stage, we show that training has a positive and significant impact on wages. The estimated wage return is about 30% for men and 38% for women. Discriminating between levels of education and working experience and the public and private sector reveals important differences across categories of workers. We find that women, low educated workers and workers with long working experience earn larger returns from training. The average effect of training is similar in the private sector and the public sector. However, differences across experience groups are larger in the private sector, while differences across education groups are larger in the public sector. We use three alternative classifications of training activities and find that training in the firm, training aimed to improve skills needed at the current job and training with duration less than a year are associated to larger wage gains.

Suggested Citation

  • Santiago Budria & Pedro Telhado Pereira, 2007. "The wage effects of training in Portugal: differences across skill groups, genders, sectors and training types," Applied Economics, Taylor & Francis Journals, vol. 39(6), pages 787-807.
  • Handle: RePEc:taf:applec:v:39:y:2007:i:6:p:787-807
    DOI: 10.1080/00036840500447757
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    References listed on IDEAS

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    1. Kuckulenz, Anja & Zwick, Thomas, 2003. "The Impact of Training on Earnings: Differences Between Participant Groups and Training Forms," ZEW Discussion Papers 03-57, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Booth, Alison L. & Bryan, Mark L., 2002. "Who Pays for General Training? New Evidence for British Men and Women," IZA Discussion Papers 486, Institute for the Study of Labor (IZA).
    3. Gerfin, Michael, 2004. "Firm-Sponsored General Training in Frictional Labour Markets: An Empirical Analysis for Switzerland," IZA Discussion Papers 1077, Institute for the Study of Labor (IZA).
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    Citations

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    Cited by:

    1. Didier Fouarge & Trudie Schils & Andries de Grip, 2013. "Why do low-educated workers invest less in further training?," Applied Economics, Taylor & Francis Journals, vol. 45(18), pages 2587-2601, June.
    2. Aistov, Andrey & Aleksandrova, Ekaterina, 2014. "Individual returns to training: Evidence from Russian firm," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 34(2), pages 56-79.
    3. Budría, Santiago & Pereira, Pedro T., 2008. "The Contribution of Vocational Training to Employment, Job-Related Skills and Productivity: Evidence from Madeira Island," IZA Discussion Papers 3462, Institute for the Study of Labor (IZA).
    4. Alvaredo, Facundo, 2009. "Top incomes and earnings in Portugal 1936-2005," Explorations in Economic History, Elsevier, vol. 46(4), pages 404-417, October.
    5. Budría, Santiago, 2012. "The shadow value of employer-provided training," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 494-514.
    6. Andrey Aistov & Ekaterina Aleksandrova, 2015. "Individual Returns to Training in a Russian Firm," HSE Working papers WP BRP 101/EC/2015, National Research University Higher School of Economics.
    7. Derek C. Jones & Panu Kalmi & Antti Kauhanen, 2012. "The effects of general and firm-specific training on wages and performance: evidence from banking," Oxford Economic Papers, Oxford University Press, vol. 64(1), pages 151-175, January.
    8. Facundo Alvaredo, 2008. "Top incomes and earnings in Portugal 1936-2004," PSE Working Papers halshs-00586795, HAL.
    9. Julia Lang, 2012. "The Aims of Lifelong Learning: Age-Related Effects of Training on Wages and Job Security," SOEPpapers on Multidisciplinary Panel Data Research 478, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Huasheng Zhu & Junwei Feng & Maojun Wang & Fan Xu, 2017. "Sustaining Regional Advantages in Manufacturing: Skill Accumulation of Rural–Urban Migrant Workers in the Coastal Area of China," Sustainability, MDPI, Open Access Journal, vol. 9(1), pages 1-23, January.
    11. Lang, Julia, 2012. "The aims of lifelong learning: Age-related effects of training on wages and job security," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62073, Verein für Socialpolitik / German Economic Association.
    12. Sofia Oliveira, 2015. "Returns to Vocational Education in Portugal," Investigaciones de Economía de la Educación volume 10,in: Marta Rahona López & Jennifer Graves (ed.), Investigaciones de Economía de la Educación 10, edition 1, volume 10, chapter 37, pages 725-750 Asociación de Economía de la Educación.
    13. Anna Ruzik-Sierdzinska & Claudia Villosio & Michele Belloni & Maciej Lis & Monika Potoczna, 2013. "Age and productivity. Human Capital Accumulation and Depreciation," CASE Network Reports 0114, CASE-Center for Social and Economic Research.
    14. Arnaud Chéron & Bénédicte Rouland & François-Charles Wolf, 2010. "Returns to firm-provided training in France:Evidence on mobility and wages," TEPP Working Paper 2010-10, TEPP.
    15. Facundo Alvaredo, 2008. "Top incomes and earnings in Portugal 1936-2004," Working Papers halshs-00586795, HAL.

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