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Minimum Wages and Provision of Training

Author

Listed:
  • Katarina Zigova
  • Thomas Zwick

Abstract

We find a substantial and long-lasting positive effect of the introduction of regional minimum wages on training incidence and intensity. We apply a stacked difference-in-differences estimation to identify the dynamic effect of high minimum wages introduced in several Swiss cantons between 2018 and 2022. Employers invest more in formal training for retained employees during working hours, covering content beyond their main economic activity. We conclude that employers increase the productivity of their employees to retain the underlying rents. We carefully rule out confounding factors and offer an explanation for the difference between our and some earlier findings.

Suggested Citation

  • Katarina Zigova & Thomas Zwick, 2025. "Minimum Wages and Provision of Training," Economics of Education Working Paper Series 0242, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0242
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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