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The returns to occupation-specific human capital - Evidence from mobility after training

Author

Listed:
  • Barbara Mueller

    () (Swiss Federal Institute for Vocational Education and Training (SFIVET))

  • Juerg Schweri

    () (Swiss Federal Institute for Vocational Education and Training (SFIVET))

Abstract

Using a longitudinal dataset based on the PISA 2000 survey, we analyze the effect of inter-firm and occupational mobility on post-training wages in Switzerland to assess the transferability of the human capital acquired in training. We show that OLS provides a lower bound estimate of the wage effects of inter-firm and occupational mobility. Inter-firm mobility has no significant wage effect in OLS regressions. However, those who stay in their occupational field earn about 5 percent more than their colleagues who change occupation. We find no evidence for adverse selection when accounting only for apprentices’ level of ability. Accounting for the endogeneity of mobility tends to increase the estimated wage differential between occupation stayers and changers, but not between firm stayers and movers. We conclude that occupation-specific human capital is an important component of apprenticeship training and accounts for a part of the returns to training.

Suggested Citation

  • Barbara Mueller & Juerg Schweri, 2012. "The returns to occupation-specific human capital - Evidence from mobility after training," Economics of Education Working Paper Series 0081, University of Zurich, Department of Business Administration (IBW).
  • Handle: RePEc:iso:educat:0081
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    File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0081_lhwpaper.pdf
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    References listed on IDEAS

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    Cited by:

    1. Fitzenberger, Bernd & Licklederer, Stefanie & Zwiener, Hanna, 2015. "Mobility across firms and occupations among graduates from apprenticeship," Labour Economics, Elsevier, vol. 34(C), pages 138-151.
    2. repec:bdp:wpaper:2015001 is not listed on IDEAS

    More about this item

    Keywords

    apprenticeship; endogenous treatment; human capital; mobility; PISA; occupation; school-to-work transition; training;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • 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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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