Estimating complementarity between education and training

Christian Belzil, Jorgen Hansen and Nicolai Kristensen

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Abstract: In this paper, we formulate and estimate a structural model of post-schooling training that explicitly allows for possible complementarity between initial schooling levels and returns to training. Precisely, the wage outcome equation depends on accumulated schooling and on the incidence of training. The effect of training on wage growth depends on individual permanent endowments as well as on education. We find evidence of statistically significant complementarity, i.e. the higher educated receive the highest return to the MBA-type training considered here.

Keywords: Skill Complementarity; Dynamic Treatment Effects; Dynamic Programming; Random Coefficients (search for similar items in EconPapers)
Date: 2009-03-04
Note: View the original document on HAL open archive server: https://hal.science/hal-00365698v1
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Working Paper: Estimating Complementarity between Education and Training (2008)
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