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

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  • 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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    Cited by:

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    2. Moretti, Luca & Mayerl, Martin & Mühlemann, Samuel & Schlögl, Peter & Wolter, Stefan C., 2017. "So Similar and Yet So Different: A Comparative Analysis of a Firm's Cost and Benefits of Apprenticeship Training in Austria and Switzerland," IZA Discussion Papers 11081, Institute of Labor Economics (IZA).
    3. 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.
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    5. Maïlys Korber, 2019. "Does Vocational Education Give a Labour Market Advantage over the Whole Career? A Comparison of the United Kingdom and Switzerland," Social Inclusion, Cogitatio Press, vol. 7(3), pages 202-223.
    6. Irene Kriesi & Juerg Schweri, 2019. "Types of Education, Achievement and Labour Market Integration over the Life Course," Social Inclusion, Cogitatio Press, vol. 7(3), pages 58-64.
    7. Kuhn, Andreas & Schweri, Jürg & Wolter, Stefan C., 2019. "Local Norms Describing the Role of the State and the Private Provision of Training," IZA Discussion Papers 12159, Institute of Labor Economics (IZA).
    8. Maria Esther Oswald-Egg & Michael Siegenthaler, 2021. "Train drain? Access to skilled foreign workers and firms' provision of training," KOF Working papers 21-495, KOF Swiss Economic Institute, ETH Zurich.
    9. Maria Esther Oswald-Egg & Michael Siegenthaler, 2021. "Train drain? Access to skilled foreign workers and firms' provision of training," Economics of Education Working Paper Series 0186, University of Zurich, Department of Business Administration (IBW).
    10. Peter Hoeschler & Uschi Backes-Gellner, 2017. "The Relative Importance of Personal Characteristics for the Hiring of Young Workers," Economics of Education Working Paper Series 0142, University of Zurich, Department of Business Administration (IBW), revised Jan 2018.
    11. Eggenberger, Christian & Rinawi, Miriam & Backes-Gellner, Uschi, 2018. "Occupational specificity: A new measurement based on training curricula and its effect on labor market outcomes," Labour Economics, Elsevier, vol. 51(C), pages 97-107.
    12. Damiano Pregaldini & Uschi Backes-Gellner, 2021. "How Middle-Skilled Workers Adjust to Immigration: The Role of Occupational Skill Specificity," Economics of Education Working Paper Series 0193, University of Zurich, Department of Business Administration (IBW).
    13. Juerg Schweri & Annina Eymann & Manuel Aepli, 2020. "Horizontal mismatch and vocational education," Applied Economics, Taylor & Francis Journals, vol. 52(32), pages 3464-3478, June.
    14. repec:bdp:wpaper:2015001 is not listed on IDEAS
    15. Haverkamp Katarzyna & Seibert Holger & Wesling Mirko, 2020. "Sektorale und berufsspezifische Ausbildungsstrategien und Übergangsmuster nach der dualen Ausbildung," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 69(1), pages 44-68, May.
    16. Ludwig-Mayerhofer, Wolfgang & Pollak, Reinhard & Solga, Heike & Menze, Laura & Leuze, Kathrin & Edelstein, Rosine & Künster, Ralf & Ebralidze, Ellen & Fehring, Gritt & Kühn, Susanne, 2019. "Vocational Education and Training and Transitions into the Labor Market," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 277-323.
    17. Melina Heiniger & Christian Imdorf, 2018. "The role of vocational education in the transmission of gender segregation from education to employment: Switzerland and Bulgaria compared," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 52(1), pages 1-21, December.

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    More about this item

    Keywords

    apprenticeship; endogenous treatment; human capital; mobility; PISA; occupation; school-to-work transition; training;
    All these keywords.

    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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