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The Returns To Training In Russia: A Difference-In-Differences Analysis

Author

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  • Pavel V. Travkin

    () (National Research University Higher School of Economics)

Abstract

This paper investigates the wage return to job-related training using a difference-in-differences estimator to control for unmeasured differences in ability and measured differences in past wages as a proxy for ability and motivation. Estimates use data from the Russia Longitudinal Monitoring Survey from 2004 to 2011. As predicted, positive returns to training are identified, and the returns increase absolutely with the level of past wages, consistent with human capital and selection models.

Suggested Citation

  • Pavel V. Travkin, 2014. "The Returns To Training In Russia: A Difference-In-Differences Analysis," HSE Working papers WP BRP 56/EC/2014, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:56/ec/2014
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    File URL: http://www.hse.ru/data/2014/04/11/1321094900/56EC2014.pdf
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    References listed on IDEAS

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    1. Dave, Dhaval M. & Reichman, Nancy E. & Corman, Hope & Das, Dhiman, 2011. "Effects of welfare reform on vocational education and training," Economics of Education Review, Elsevier, vol. 30(6), pages 1399-1415.
    2. Alberto Abadie & Joshua Angrist & Guido Imbens, 2002. "Instrumental Variables Estimates of the Effect of Subsidized Training on the Quantiles of Trainee Earnings," Econometrica, Econometric Society, vol. 70(1), pages 91-117, January.
    3. Michael Gerfin, 2003. "Work-Related Training and Wages: An empirical analysis for male workers in Switzerland," Diskussionsschriften dp0316, Universitaet Bern, Departement Volkswirtschaft.
    4. Bauer, Thomas K. & Haisken-DeNew, John P., 2001. "Employer learning and the returns to schooling," Labour Economics, Elsevier, vol. 8(2), pages 161-180, May.
    5. Brunello, Giorgio, 2001. "On the Complementarity between Education and Training in Europe," IZA Discussion Papers 309, Institute for the Study of Labor (IZA).
    6. Tan, Hong & Savchenko, Yevgeniya & Gimpelson, Vladimir & Kapeliushnikov, Rostislav & Lukiyanova, Anna, 2007. "Skills Shortages and Training in Russian Enterprises," IZA Discussion Papers 2751, Institute for the Study of Labor (IZA).
    7. Goux, Dominique & Maurin, Eric, 2000. "Returns to firm-provided training: evidence from French worker-firm matched data1," Labour Economics, Elsevier, vol. 7(1), pages 1-19, January.
    8. Mark C. Berger & John S. Earle & Klara Sabirianova, 2001. "Worker Training in a Restructuring Economy: Evidence from the Russian Transition," Book chapters authored by Upjohn Institute researchers,in: Soloman W. Polachek (ed.), Worker Wellbeing in a Changing Labor Market, pages 159-189 W.E. Upjohn Institute for Employment Research.
    9. Battu, Harminder & Belfield, Clive R. & Sloane, Peter J., 2001. "Human Capital Spill-Overs Within the Workplace," IZA Discussion Papers 404, Institute for the Study of Labor (IZA).
    10. Travkin, Pavel, 2014. "The impact of the on-the-job training on Russian worker’s salary: The effect of abilities approach," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 33(1), pages 51-70.
    11. repec:eme:rlepps:v:18:y:1999:i:1999:p:439-461 is not listed on IDEAS
    12. Шарунина Анна Вячеславовна, 2013. "Является Ли Российский «Бюджетник» «Неудачником»? Анализ Межсекторных Различий В Оплате Труда," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 17(1), pages 75-107.
    13. Lazareva Olga, 2006. "Firm-paid vs. worker-paid on-the-job training in Russia: Determinants and returns," EERC Working Paper Series 06-05e, EERC Research Network, Russia and CIS.
    14. Vladimir Gimpelson & Rostislav Kapeliushnikov & Anna Lukiyanova, 2010. "Stuck between Surplus and Shortage: Demand for Skills in Russian Industry," LABOUR, CEIS, vol. 24(3), pages 311-332, September.
    15. John M. Barron & Mark C. Berger & Dan A. Black, 1999. "Do Workers Pay for On-The-Job Training?," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 235-252.
    16. Gérard Ballot & Fathi Fakhfakh & Erol Taymaz, 2006. "Who Benefits from Training and R&D, the Firm or the Workers?," British Journal of Industrial Relations, London School of Economics, vol. 44(3), pages 473-495, September.
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    Cited by:

    1. 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.

    More about this item

    Keywords

    returns to training; human capital; unobserved abilities; Russia.;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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