IDEAS home Printed from https://ideas.repec.org/p/ecm/nawm04/492.html

Career Progression and Formal versus on the Job Training

Author

Abstract

This paper evaluates the return to formal education over the life-cycle and compare it to informal, on the job training. More specifically, we assess the apprenticeship system in Germany by comparing the long run value of education choices and subsequent labor market outcomes for apprentices and non-apprentices. We develop a structural model of career progression and educational choice, allowing for unobserved ability, endogenous job to job transition, specific firm-worker matches, specific returns to tenure and to general experience. We estimate this model on a large panel data set which describes the career progression of young Germans. We find that formal education is more important than informal training, even when taking into account for the possible selection into education. We use the estimated model to evaluate the long-run impact of labor market policies on educational choices and career progression. We find that policies such as the Earned Income Tax Credit which subsidize low wage have a detrimental effect on the probability of further education and on job mobility.

Suggested Citation

  • Adda & Dustmann, 2004. "Career Progression and Formal versus on the Job Training," Econometric Society 2004 North American Winter Meetings 492, Econometric Society.
    • Handle: RePEc:ecm:nawm04:492
    as

    Download full text from publisher

    File URL: http://repec.org/esNAWM04/up.26681.1049204166.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ecm:nawm04:492. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/essssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.