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Minimum Wages, On‐the‐Job Training, and Wage Growth

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  • Adam J. Grossberg
  • Paul Sicilian

Abstract

Using data from the Employment Opportunities Pilot Project, we examine the relationships between minimum wages, wage growth, and on‐the‐job training. We find that minimum wage jobs exhibit less wage growth than other jobs, particularly for men. We find no evidence, however, of a unique minimum wage effect on training opportunities. We conclude that indirect methods of proxying training with wage growth can be misleading as they fail to distinguish whether the reduced wage growth of workers on minimum wage jobs results from their receiving less training than other workers or whether it is strictly a result of the wage determination process.

Suggested Citation

  • Adam J. Grossberg & Paul Sicilian, 1999. "Minimum Wages, On‐the‐Job Training, and Wage Growth," Southern Economic Journal, John Wiley & Sons, vol. 65(3), pages 539-556, January.
    • Handle: RePEc:wly:soecon:v:65:y:1999:i:3:p:539-556
    DOI: 10.1002/j.2325-8012.1999.tb00175.x
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    References listed on IDEAS

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    Cited by:

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    2. Jung-Seung Yang, 2022. "Dynamics of Firm’s Investment in Education and Training: An Agent-based Approach," Computational Economics, Springer;Society for Computational Economics, vol. 60(4), pages 1317-1351, December.
    3. Hristos Doucouliagos & Katarina Zigova, 2024. "Minimum Wages and Human Capital Investment: A Meta-Regression Analysis," Economics of Education Working Paper Series 0219, University of Zurich, Department of Business Administration (IBW).
    4. Dale Belman & Paul Wolfson & Kritkorn Nawakitphaitoon, 2015. "Who Is Affected by the Minimum Wage?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(4), pages 582-621, October.
    5. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.

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