On-The-Job Training and Starting Wages

Paul Sicilian

Journal of Labor Research, 2001, vol. 22, issue 4, 809-816

Abstract: Human capital theory predicts that training should reduce starting wages, yet this relationship remains empirically undocumented. Estimation of how training affects wages must control heterogeneity bias. I do this by estimating first-difference starting wage regressions on a sample of workers from the Employment Opportunities Pilot Project (EOPP) data. I find that on-the-job training has a statistically significant effect on starting wages.

Date: 2001
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