Estimating Complementarity between Education and Training

Christian Belzil (), Jorgen Hansen () and Nicolai Kristensen ()

No 3882, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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: dynamic programming; dynamic treatment effects; skill complementarity; random coefficients (search for similar items in EconPapers)
JEL-codes: I2 J2 J3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-hrm and nep-lab
Date: 2008-12
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Working Paper: Estimating complementarity between education and training (2009)
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