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Minimum Wages and the Structure of Training

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  • Katarina Zigova
  • Thomas Zwick

Abstract

We find a positive effect of minimum wages on continuing professional training. Several Swiss cantons introduced high and strongly binding minimum wages in the period 2018-2022. We apply a stacked diff-in-diff estimation model to identify the dynamic policy effect on training. Drawing on several surveys with extensive details on employees' training, we find robust evidence of an increase in training incidence and intensity. The positive effect is mainly driven by firm-financed formal training during working hours that covers contents beyond current professional activities. There are substantial ripple effects and most workers experience extra training, irrespective of their tenure and wage level. We argue that the strong minimum wage bite and our ability to measure the full dynamic training effects on all employees in treated cantons explain the difference between our findings and those in the previous theoretical and empirical literature.

Suggested Citation

  • Katarina Zigova & Thomas Zwick, 2025. "Minimum Wages and the Structure 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

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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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