Employer‐Provided Training and Tenure‐Earnings

Ioannis Theodossiou and H. Williams

Scottish Journal of Political Economy, 1998, vol. 45, issue 3, 258-272

Abstract: This article examines the tenure‐earnings profiles and suggests that the more training is provided to the individual by the employer, the steeper is the tenure profile of earnings. The provision of training by the employer is modelled as endogenous and subject to choice decisions using an ordered probit model corresponding to three levels of training. The earnings equations of three groups of employees are then adjusted for potential effects of bias due to selectivity by using Lee's procedure, and heterogeneity bias using the Altonji and Shakotko instrumental variable procedure.

Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:bla:scotjp:v:45:y:1998:i:3:p:258-272

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