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Private Sector Training and its Impact on the Earnings of Young Workers


  • Lisa M. Lynch


While there have been numerous studies devoted to examining the impact of governmental training programs on workers who? have experienced difficulties in the labor market, there has been remarkably little research on the actual occurrence and consequences of training provided by the private sector in the U.S .. Using data from the new National Longitudinal Survey youth cohort, this paper analyzes how personal characteristics including employment histories, and local demand conditions determine the probability of receiving training and its effect on wages and wage growth of young workers. More specifically, some of the issues addressed here include the relative importance of training and tenure for wage determination and the rate of return to company provided training compared to the rate of return to training received outside the firm and schooling. The portability of company training from employer to employer and the existence of differentials in the returns to training by union status, race and sex are also investigated.

Suggested Citation

  • Lisa M. Lynch, 1989. "Private Sector Training and its Impact on the Earnings of Young Workers," NBER Working Papers 2872, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:2872
    Note: LS

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    References listed on IDEAS

    1. Gary Burtless, 1983. "Why Is Insured Unemployment So Low?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 14(1), pages 225-254.
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    Cited by:

    1. Lisa M. Lynch, 2004. "Development Intermediaries and the Training of Low-Wage Workers," NBER Chapters,in: Emerging Labor Market Institutions for the Twenty-First Century, pages 293-314 National Bureau of Economic Research, Inc.
    2. Guido Imbens & Lisa Lynch, 2006. "Re-employment probabilities over the business cycle," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 5(2), pages 111-134, August.
    3. Budría, Santiago & Pereira, Pedro T., 2008. "The Contribution of Vocational Training to Employment, Job-Related Skills and Productivity: Evidence from Madeira Island," IZA Discussion Papers 3462, Institute for the Study of Labor (IZA).
    4. Stephen E. Baldwin, 1990. "Employment futures: Reorganization, dislocation, and public policy, by Paul Osterman. New York: Oxford University Press, 1988. 207 pp. Price: $24.95 cloth," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 9(2), pages 277-279.
    5. Ann P. Bartel, 1992. "Training, Wage Growth and Job Performance: Evidence From a Company Database," NBER Working Papers 4027, National Bureau of Economic Research, Inc.
    6. Alba, Alfonso, 1991. "Formal trainning, temporary, contracts, productivity and wages in Spain," UC3M Working papers. Economics 2806, Universidad Carlos III de Madrid. Departamento de Economía.
    7. Ann P. Bartel, 1991. "Productivity Gains From the Implementation of Employee Training Programs," NBER Working Papers 3893, National Bureau of Economic Research, Inc.
    8. Ann P. Bartel, 1989. "Formal Employee Training Programs and Their Impact on Labor Produc- tivity: Evidence from a Human Resources Survey," NBER Working Papers 3026, National Bureau of Economic Research, Inc.

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