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Are There Asymmetries in the Effects of Training on the Conditional Male Wage Distribution?

  • Arulampalam, Wiji

    ()

    (University of Warwick)

  • Booth, Alison L.

    ()

    (Australian National University)

  • Bryan, Mark L.

    ()

    (University of Essex)

We use a quantile regression framework to investigate the degree to which work-related training affects the location, scale and shape of the conditional wage distribution. Human capital theory suggests that the percentage returns to training investments will be the same across the conditional wage distribution. Other theories – whether based on imperfections in the labour market or on skill-mix heterogeneity – suggest that this need not be the case. Using the first six waves of the European Community Household Panel, we investigate these issues for private sector men in ten European Union countries. Our results show that, for the vast majority of countries, investment in training yields similar percentage returns across the conditional wage distribution. Only Belgium was an outlier in this respect. However, our results do indicate that there are considerable differences in mean returns to training across countries.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 984.

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Length: 32 pages
Date of creation: Jan 2004
Date of revision:
Publication status: published in: Journal of Population Economics, 2010, 23 (1), 251-272
Handle: RePEc:iza:izadps:dp984
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  23. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2005. "Is there a glass ceiling over Europe? Exploring the gender pay gap across the wages distribution," ISER Working Paper Series 2005-25, Institute for Social and Economic Research.
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  25. Martins, Pedro S. & Pereira, Pedro T., 2004. "Does education reduce wage inequality? Quantile regression evidence from 16 countries," Labour Economics, Elsevier, vol. 11(3), pages 355-371, June.
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  29. Edward P. Lazear, 2003. "Firm-Specific Human Capital: A Skill-Weights Approach," NBER Working Papers 9679, National Bureau of Economic Research, Inc.
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  31. Arulampalam, Wiji & Booth, Alison L, 2001. "Learning and Earning: Do Multiple Training Events Pay? A Decade of Evidence from a Cohort of Young British Men," Economica, London School of Economics and Political Science, vol. 68(271), pages 379-400, August.
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