Analysing the effect of training on wages - using combined survey-register data

This article analysis the impact of training on wages using combined survey-register material. The objective is threefold: to combine survey and register information to estimate individual return from training on wages; to estimate the impact from both individual and firm level training on individua...

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Bibliographic Details
Published in:International journal of manpower 2001-01, Vol.22 (1/2), p.138-158
Main Author: Schone, Pal
Format: Article
Language:English
Subjects:
Correlation analysis
Education
Employees
Employers
Employment
Human capital
Impact analysis
Productivity
Skills
Social research
Studies
Tenure
Training
Variables
Wages & salaries
Workers
Workforce
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Summary:This article analysis the impact of training on wages using combined survey-register material. The objective is threefold: to combine survey and register information to estimate individual return from training on wages; to estimate the impact from both individual and firm level training on individual wages; and to confront the results with control for unobserved individual and firm level heterogeneity. Results using register data show that the return from individual training is approximately 3.1 per cent per year. The return from the average training level at the firm is also positive and significant. After control for unobservable individual and firm level heterogeneity a positive impact from individual training is found, but evidence of a positive relationship between the mean level of training at the firm level and individual wages is no longer found. Our interpretation of these findings is that training has a positive individual effect, but has no positive firm-specific external effects on other workers at the plant.
ISSN:0143-7720
1758-6577
DOI:10.1108/01437720110386449