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Do Lower Expected Wage Benefits Explain Ethnic Age Gaps in Job-Related Training? Evidence from New Zealand

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  • John Gibson

    () (University of Waikato)

Abstract

Many studies show that individuals from ethnic minority groups receive low levels of job-related training, raising the question of whether lower expected wage benefits contribute to this lack of training. In this paper, unit record data are used to examine the effect of job-related training on wages in New Zealand. The results suggest that both the receipt of employer-provided training, and the number of training events, have larger effects on wages for minority workers than they do for white workers. There are no differences across ethnic groups in the wage benefits from other types of training.

Suggested Citation

  • John Gibson, 2003. "Do Lower Expected Wage Benefits Explain Ethnic Age Gaps in Job-Related Training? Evidence from New Zealand," Working Papers 03_03, Motu Economic and Public Policy Research.
  • Handle: RePEc:mtu:wpaper:03_03
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    File URL: http://motu-www.motu.org.nz/wpapers/03_03.pdf
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    References listed on IDEAS

    as
    1. Mark B. Stewart, 1983. "On Least Squares Estimation when the Dependent Variable is Grouped," Review of Economic Studies, Oxford University Press, vol. 50(4), pages 737-753.
    2. Booth, Alison L, 1991. "Job-Related Formal Training: Who Receives It and What Is It Worth?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(3), pages 281-294, August.
    3. Richard Blundell & Lorraine Dearden & Costas Meghir & Barbara Sianesi, 1999. "Human capital investment: the returns from education and training to the individual, the firm and the economy," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 1-23, March.
    4. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages 112-142, February.
    5. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-482, June.
    6. Shields, Michael A & Price, Stephen Wheatley, 1999. "Ethnic Differences in the Incidence and Determinants of Employer-Funded Training in Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(5), pages 523-551, November.
    7. Greenhalgh, Christine & Stewart, Mark, 1987. "The Effects and Determinants of Training," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(2), pages 171-190, May.
    8. Wiji Arulampalam & Alison L. Booth, 1997. "Who gets over the training hurdle? A study of the training experiences of young men and women in Britain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 10(2), pages 197-217.
    9. Lynch, Lisa M, 1992. "Private-Sector Training and the Earnings of Young Workers," American Economic Review, American Economic Association, vol. 82(1), pages 299-312, March.
    10. Oosterbeek, Hessel, 1998. "Unravelling Supply and Demand Factors in Work-Related Training," Oxford Economic Papers, Oxford University Press, vol. 50(2), pages 266-283, April.
    11. Duncan, Greg J & Hoffman, Saul, 1979. "On-the-Job Training and Earnings Differences by Race and Sex," The Review of Economics and Statistics, MIT Press, vol. 61(4), pages 594-603, November.
    12. Flanagan, Robert J, 1974. "Labor Force Experience, Job Turnover, and Racial Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 56(4), pages 521-529, November.
    13. John Gibson, 2000. "Sheepskin effects and the returns to education in New Zealand: Do they differ by ethnic groups?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 34(2), pages 201-220.
    14. Booth, Alison L, 1993. "Private Sector Training and Graduate Earnings," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 164-170, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Earnings; Job training; Minorities; Selectivity;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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