On-The-Job Training and Starting Wages
Human capital theory predicts that training should reduce starting wages, yet this relationship remains empirically undocumented. Estimation of how training affects wages must control heterogeneity bias. I do this by estimating first-difference starting wage regressions on a sample of workers from the Employment Opportunities Pilot Project (EOPP) data. I find that on-the-job training has a statistically significant effect on starting wages.
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Volume (Year): 22 (2001)
Issue (Month): 4 (October)
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