Minimum Wages and Provision of Training

Katarina Zigova and Thomas Zwick

No 242, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)

Abstract: We find a substantial and long-lasting positive effect of the introduction of regional minimum wages on training incidence and intensity. We apply a stacked difference-in-differences estimation to identify the dynamic effect of high minimum wages introduced in several Swiss cantons between 2018 and 2022. Employers invest more in formal training for retained employees during working hours, covering content beyond their main economic activity. We conclude that employers increase the productivity of their employees to retain the underlying rents. We carefully rule out confounding factors and offer an explanation for the difference between our and some earlier findings.

Keywords: minimum wages; continuing training; staggered policy introduction (search for similar items in EconPapers)
JEL-codes: J08 J51 M53 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2025-05
New Economics Papers: this item is included in nep-inv and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:iso:educat:0242

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