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Postschooling Training Investment and Employer Learning

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  • Barış Kaymak

Abstract

Wage growth among young workers relates positively to ability and negatively to education, conditional on ability. This was interpreted as evidence for statistical discrimination with employer learning. I show that this pattern is also consistent with a version of the Ben-Porath model of skill formation in which (i) workers differ in their learning ability and (ii) job training is a substitute for formal schooling. Data on job training from the NLSY confirm both modeling extensions for young workers. Nonetheless, for more experienced workers, job training and formal schooling appear to be positively related, even after controlling for ability.

Suggested Citation

  • Barış Kaymak, 2014. "Postschooling Training Investment and Employer Learning," Journal of Human Capital, University of Chicago Press, vol. 8(3), pages 318-349.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/678261
    DOI: 10.1086/678261
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    References listed on IDEAS

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    1. Joseph G. Altonji & James R. Spletzer, 1991. "Worker Characteristics, Job Characteristics, and the Receipt of On-the-Job Training," ILR Review, Cornell University, ILR School, vol. 45(1), pages 58-79, October.
    2. Joseph G. Altonji & Charles R. Pierret, 2001. "Employer Learning and Statistical Discrimination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(1), pages 313-350.
    3. Isaac Ehrlich & Jinyoung Kim, 2007. "The Evolution of Income and Fertility Inequalities over the Course of Economic Development: A Human Capital Perspective," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 137-174.
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    Cited by:

    1. Andriana Bellou & Bariş Kaymak, 2021. "The Cyclical Behavior of Job Quality and Real Wage Growth," American Economic Review: Insights, American Economic Association, vol. 3(1), pages 83-96, March.
    2. Wang, Jun & Li, Bo, 2020. "Does employer learning with statistical discrimination exist in China? Evidence from Chinese Micro Survey Data," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 319-333.
    3. Gaurab Aryal & Manudeep Bhuller & Fabian Lange, 2022. "Signaling and Employer Learning with Instruments," American Economic Review, American Economic Association, vol. 112(5), pages 1669-1702, May.

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