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Are There Asymmetries In The Effects Of Training On The Conditional Male Wage Distribution?

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  • Mark Bryan
  • Wiji Arulampalam
  • Alison Booth

Abstract

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. Our results do indicate, however, that there are considerable differences in mean returns to training across countries.
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  • Mark Bryan & Wiji Arulampalam & Alison Booth, 2004. "Are There Asymmetries In The Effects Of Training On The Conditional Male Wage Distribution?," Royal Economic Society Annual Conference 2004 115, Royal Economic Society.
    • Handle: RePEc:ecj:ac2004:115
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    Cited by:

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    2. Ang Boon Heng & Park Cheolsung & Liu Haoming & Shandre M. Thangavelu & James Wong, 2006. "The Impact of Structured Training on Workers’ Employability and Productivity," Labor Economics Working Papers 21918, East Asian Bureau of Economic Research.
    3. Pavel V. Travkin, 2014. "The Returns To Training In Russia: A Difference-In-Differences Analysis," HSE Working papers WP BRP 56/EC/2014, National Research University Higher School of Economics.
    4. Kuckulenz Anja & Maier Michael, 2006. "Heterogeneous Returns to Training: An Analysis with German Data Using Local Instrumental Variables," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(1), pages 24-40, February.
    5. Mario Rueda Narváez & Mª Lucía Navarro Gómez, 2010. "Formación laboral y salarios en España: nueva evidencia empírica," Investigaciones de Economía de la Educación volume 5, in: María Jesús Mancebón-Torrubia & Domingo P. Ximénez-de-Embún & José María Gómez-Sancho & Gregorio Gim (ed.), Investigaciones de Economía de la Educación 5, edition 1, volume 5, chapter 15, pages 305-324, Asociación de Economía de la Educación.
    6. Almeida-Santos, Filipe & Mumford, Karen A., 2006. "Employee Training, Wage Dispersion and Equality in Britain," IZA Discussion Papers 2276, Institute of Labor Economics (IZA).
    7. Popescu, Madalina Ecaterina & Roman, Monica, 2018. "Vocational training and employability: Evaluation evidence from Romania," Evaluation and Program Planning, Elsevier, vol. 67(C), pages 38-46.
    8. Travkin, Pavel, 2014. "The impact of the on-the-job training on Russian worker’s salary: The effect of abilities approach," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 51-70.
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    10. José M Arranz & Enrique Fernández-Macías & Carlos García-Serrano, 2021. "Wage differentials and segmentation: The impact of institutions and changing economic conditions," European Journal of Industrial Relations, , vol. 27(2), pages 203-227, June.
    11. Filipe Almeida-Santos & Yekaterina Chzhen & Karen Mumford, 2010. "Employee training and wage dispersion: white- and blue-collar workers in Britain," Research in Labor Economics, in: Jobs, Training, and Worker Well-being, pages 35-60, Emerald Group Publishing Limited.
    12. Anna Ruzik-Sierdzinska & Claudia Villosio & Michele Belloni & Maciej Lis & Monika Potoczna, 2013. "Age and productivity. Human Capital Accumulation and Depreciation," CASE Network Reports 0114, CASE-Center for Social and Economic Research.
    13. Ang Boon Heng & Park Cheolsung & Liu Haoming & Shandre M. Thangavelu & James Wong, 2006. "The Impact of Structured Training on Workers’ Employability and Productivity," SCAPE Policy Research Working Paper Series 0702, National University of Singapore, Department of Economics, SCAPE.
    14. Siang, Liew & Noor, Zulridah, 2015. "The Impact of Training on the Conditional Wage Distribution in Selected Service Subsectors in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 49(1), pages 37-48.
    15. Carrasco, Raquel & Alvarez, Gema, 2013. "Measuring the impact of on the job training on job mobility," MPRA Paper 103353, University Library of Munich, Germany, revised 2015.
    16. Perugini, Cristiano & Pompei, Fabrizio, 2016. "Employment protection and wage inequality within education groups in Europe," Journal of Policy Modeling, Elsevier, vol. 38(5), pages 810-836.
    17. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    18. Perugini, Cristiano & Pompei, Fabrizio, 2017. "Temporary Jobs, Institutions, and Wage Inequality within Education Groups in Central-Eastern Europe," World Development, Elsevier, vol. 92(C), pages 40-59.

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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