IDEAS home Printed from https://ideas.repec.org/p/iso/educat/0023.html
   My bibliography  Save this paper

On the Link Between On-the-Job Training and Earnings Dispersion

Author

Listed:
  • Said Hanchane

    (Institut d’Economie Publique (IDEP), Marseille, and Laboratoire d’Economie et de Sociologie du Travail (LEST), Aix-en-Provence)

  • Jacques Silber

    (Department of Economics, Bar-Ilan University, Israel, and Institut d’Economie Publique (IDEP), Marseille)

Abstract

This paper is a first attempt to devise a methodology that allows estimating the exact impact of training on the dispersion of wages. It uses an approach originally proposed by Fields (2003) but extends it to the breakdown of inequality by population subgroups as well as to the case where the earnings function that is at the base of the analysis has to be adjusted for selectivity bias. The empirical illustration is based on a survey conducted in France at the end of the twentieth century.

Suggested Citation

  • Said Hanchane & Jacques Silber, 2007. "On the Link Between On-the-Job Training and Earnings Dispersion," Economics of Education Working Paper Series 0023, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0023
    as

    Download full text from publisher

    File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0023_lhwpaper.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Karoly, Lynn A, 1992. "Changes in the Distribution of Individual Earnings in the United States: 1967-1986," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 107-115, February.
    2. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 35-78.
    3. Saïd Hanchane & François Stankiewicz, 2004. "Propositions pour une théorie organisationnelle de la formation : les enseignements de l'enquête Formation continue 2000," Working Papers halshs-00010249, HAL.
    4. Richard Blundell & Lorraine Dearden & Costas Meghir & Barbara Sianesi, 1999. "Human capital investment: the returns from education and training to the individual, the firm and the economy," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 1-23, March.
    5. Dickens, William T & Lang, Kevin, 1985. "A Test of Dual Labor Market Theory," American Economic Review, American Economic Association, vol. 75(4), pages 792-805, September.
    6. Maurice Marc & François Sellier & Jean-Jacques Silvestre, 1982. "Politique d'éducation et organisation industrielle en France et en Allemagne : essai d'analyse sociétale," Post-Print halshs-03771489, HAL.
    7. Dominique Goux & Éric Maurin, 1997. "Les entreprises, les salariés et la formation continue," Économie et Statistique, Programme National Persée, vol. 306(1), pages 41-55.
    8. Saïd Hanchane & Xavier Joutard, 1998. "Une approche empirique de la structure du marché du travail : salaires, formes de mobilité et formation professionnelle continue," Économie et Prévision, Programme National Persée, vol. 135(4), pages 57-75.
    9. Dave E. Marcotte, 2000. "Continuing Education, Job Training, and the Growth of Earnings Inequality," ILR Review, Cornell University, ILR School, vol. 53(4), pages 602-623, July.
    10. Per Krusell & Lee E. Ohanian & JosÈ-Victor RÌos-Rull & Giovanni L. Violante, 2000. "Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis," Econometrica, Econometric Society, vol. 68(5), pages 1029-1054, September.
    11. James Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explanations With A Dynamic General Equilibrium Model of Labor Earnings With Heterogeneous Agents," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 1-58, January.
    12. James J. Heckman & V. Joseph Hotz, 1986. "An Investigation of the Labor Market Earnings of Panamanian Males Evaluating the Sources of Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 507-542.
    13. Marc Maurice & François Sellier & Jean-Jacques Silvestre, 1982. "Politique d'éducation et organisation industrielle en France et en Allemagne : essai d'analyse sociétale," Post-Print halshs-03739361, HAL.
    14. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-1381, September.
    15. Dominique Goux & Éric Maurin, 1994. "Éducation, expérience et salaire," Économie et Prévision, Programme National Persée, vol. 116(5), pages 155-178.
    16. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    17. Magnac, Th, 1991. "Segmented or Competitive Labor Markets," Econometrica, Econometric Society, vol. 59(1), pages 165-187, January.
    18. Bound, John & Johnson, George, 1992. "Changes in the Structure of Wages in the 1980's: An Evaluation of Alternative Explanations," American Economic Review, American Economic Association, vol. 82(3), pages 371-392, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dimova, Ralitza & Wolff, François-Charles, 2008. "Are private transfers poverty and inequality reducing? Household level evidence from Bulgaria," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 584-598, December.
    2. Jellal, Mohamed, 2014. "Firmes industrielles incitations et formation approche théorique [Industrial firms incentives and training Policy theoretical approach]," MPRA Paper 57306, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ariell Reshef, 2013. "Is Technological Change Biased Towards the Unskilled in Services? An Empirical Investigation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(2), pages 312-331, April.
    2. Ariell Reshef, 2013. "Is Technological Change Biased Towards the Unskilled in Services? An Empirical Investigation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(2), pages 312-331, April.
    3. Saïd Hanchane & Xavier Joutard, 1998. "Une approche empirique de la structure du marché du travail : salaires, formes de mobilité et formation professionnelle continue," Économie et Prévision, Programme National Persée, vol. 135(4), pages 57-75.
    4. Bhalotra, Sonia & Fernandez Sierra, Manuel, 2018. "The distribution of the gender wage gap," ISER Working Paper Series 2018-10, Institute for Social and Economic Research.
    5. Jonathan Heathcote & Fabrizio Perri & Giovanni L. Violante, 2010. "Unequal We Stand: An Empirical Analysis of Economic Inequality in the United States: 1967-2006," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 15-51, January.
    6. Keane, Michael P. & Todd, Petra E. & Wolpin, Kenneth I., 2011. "The Structural Estimation of Behavioral Models: Discrete Choice Dynamic Programming Methods and Applications," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 4, pages 331-461, Elsevier.
    7. Hendricks, Lutz & Schoellman, Todd, 2014. "Student abilities during the expansion of US education," Journal of Monetary Economics, Elsevier, vol. 63(C), pages 19-36.
    8. Fonseca, Tiago & Lima, Francisco & Pereira, Sonia C., 2018. "Job polarization, technological change and routinization: Evidence for Portugal," Labour Economics, Elsevier, vol. 51(C), pages 317-339.
    9. Zsófia L. Bárány, 2016. "The Minimum Wage and Inequality: The Effects of Education and Technology," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 237-274.
    10. Fatih Guvenen & Burhanettin Kuruscu, 2010. "A Quantitative Analysis of the Evolution of the US Wage Distribution, 1970–2000," NBER Chapters, in: NBER Macroeconomics Annual 2009, Volume 24, pages 227-276, National Bureau of Economic Research, Inc.
    11. Anders Frederiksen & Odile Poulsen, 2016. "Income Inequality: The Consequences Of Skill-Upgrading When Firms Have Hierarchical Organizational Structures," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 1224-1239, April.
    12. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed the Labor Market?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1169-1213.
    13. Fitzenberger, Bernd & Kohn, Karsten, 2006. "Skill Wage Premia, Employment, and Cohort Effects: Are Workers in Germany All of the Same Type?," IZA Discussion Papers 2185, Institute of Labor Economics (IZA).
    14. Alan Barrett & Tim Callan & Brian Nolan, 1997. "The Earnings Distribution and Returns to Education in Ireland, 1987-1994," Papers WP085, Economic and Social Research Institute (ESRI).
    15. Bacolod, Marigee & Joseph Hotz, V., 2006. "Cohort changes in the transition from school to work: Evidence from three NLS surveys," Economics of Education Review, Elsevier, vol. 25(4), pages 351-373, August.
    16. Hornstein, Andreas & Krusell, Per & Violante, Giovanni L., 2005. "The Effects of Technical Change on Labor Market Inequalities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 20, pages 1275-1370, Elsevier.
    17. Koomen, Miriam & Backes-Gellner, Uschi, 2022. "Occupational tasks and wage inequality in West Germany: A decomposition analysis," Labour Economics, Elsevier, vol. 79(C).
    18. Lee, Donghoon & Wolpin, Kenneth I., 2010. "Accounting for wage and employment changes in the US from 1968-2000: A dynamic model of labor market equilibrium," Journal of Econometrics, Elsevier, vol. 156(1), pages 68-85, May.
    19. Fabián Slonimczyk, 2013. "Earnings inequality and skill mismatch in the U.S.: 1973–2002," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(2), pages 163-194, June.
    20. Alexandra Spitz-Oener, 2006. "Technical Change, Job Tasks, and Rising Educational Demands: Looking outside the Wage Structure," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 235-270, April.

    More about this item

    Keywords

    earnings’ dispersion; France; labour market segmentation; on-the-job training; overlapping; selectivity bias; unobserved heterogeneity;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    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:iso:educat:0023. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sara Brunner (email available below). General contact details of provider: https://edirc.repec.org/data/isuzhch.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.