Training subsidies and the wage returns to continuing vocational training

Giorgio Brunello, Simona Comi and Daniela Sonedda

Labour Economics, 2012, vol. 19, issue 3, 361-372

Abstract: We use the regional and time variation of training grants in Italy to identify the causal effect of (formal continuing vocational) training on earnings. We estimate log-linear earnings regressions with constant marginal returns to training and find that one additional week of training increases monthly net earnings by 1.36%, substantially less than the 3% or more often found in the literature. Estimated returns vary significantly by firm size, and range from 0.40% in firms with more than 100 employees to 2.51% in smaller firms, the bulk of the Italian private sector. A simple back of the envelope comparison of the marginal costs and benefits of training policy suggests that the latter are higher than the former.

Keywords: Returns to training; Training subsidies (search for similar items in EconPapers)
JEL-codes: J24 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (24)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:19:y:2012:i:3:p:361-372

DOI: 10.1016/j.labeco.2012.03.002

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