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The Returns from Training in Colombia: Evidence from a Longitudinal Survey

Luz Florez (), Lina Cardona-Sosa (), Leonardo Morales () and Julian Londoño ()
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Julian Londoño: Banco de la República de Colombia

Borradores de Economia from Banco de la Republica de Colombia

Abstract: In this paper we explore the wage returns from training in Colombia, using data from the “The Social Longitudinal Survey” between 2009 and 2010. Using the longitudinal component of the data, we control for time invariant individuals’ unobserved heterogeneity and, following Wooldridge (1995), we correct for sample selection in panel data. Our results suggest that there is a positive return from training. The magnitude of the estimates suggests an increase in wages between 7% and 9%. We find that OLS overestimate the effects of receiving training. This suggests that individuals who receive training are the ones with high unobserved skills. We also find that trainees increase their probability of being continuously employed, suggesting an improvement in individuals’ working conditions. **** RESUMEN: Este documento explora los retornos de la capacitación para el trabajo en Colombia usando los datos de la Encuesta Longitudinal de Fedesarrollo entre 2009 y 2010. Los datos panel nos permite controlar por la heterogeneidad no observada de los individuos, que no cambia en el tiempo. Para controlar por el sesgo de selección, utilizamos la metodología de corrección propuesta en Wooldridge (1995). Los resultados sugieren que los retornos a la capacitación para el trabajo son positivos y significativos, entre el 7% y 9%. Adicionalmente, los resultados indican que la mayor capacitación incrementa la probabilidad de continuar empleado, sugiriendo una mejora en las condiciones laborales de los individuos.

Keywords: Education; returns from training; unobserved heterogeneity; sample selection bias and panel data; Educación; retornos de la capacitación; heterogeneidad no observada; sesgo de selección; datos panel (search for similar items in EconPapers)
JEL-codes: C23 I26 J31 P36 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lam and nep-lma
Date: 2018-08
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Persistent link: https://EconPapers.repec.org/RePEc:bdr:borrec:1048

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