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Estimating Complementarity between Education and Training

Author

Listed:
  • Belzil, Christian

    (Ecole Polytechnique, Paris)

  • Hansen, Jörgen

    (Concordia University)

  • Kristensen, Nicolai

    (VIVE - The Danish Centre for Applied Social Science)

Abstract

In this paper, we formulate and estimate a structural model of post-schooling training that explicitly allows for possible complementarity between initial schooling levels and returns to training. Precisely, the wage outcome equation depends on accumulated schooling and on the incidence of training. The effect of training on wage growth depends on individual permanent endowments as well as on education. We find evidence of statistically significant complementarity, i.e. the higher educated receive the highest return to the MBA-type training considered here.

Suggested Citation

  • Belzil, Christian & Hansen, Jörgen & Kristensen, Nicolai, 2008. "Estimating Complementarity between Education and Training," IZA Discussion Papers 3882, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3882
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    References listed on IDEAS

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    More about this item

    Keywords

    dynamic programming; dynamic treatment effects; skill complementarity; random coefficients;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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