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

  • Barbara Mueller


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

  • Juerg Schweri


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

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.

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Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0081.

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Length: 31 pages
Date of creation: Aug 2012
Date of revision:
Handle: RePEc:iso:educat:0081
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