The Wage Returns to On-the-Job Training: Evidence from Matched Employer-Employee Data

Rita Almeida () and Marta Lince de Faria ()
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Marta Lince de Faria: Católica Lisbon

No 8314, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Skills shortages and skill mismatch are a pressing concern for policymakers in several developing countries, and in East Asia specifically. Providing on-the-job training can be an effective policy tool to shape the skills of the existent workforce to the specific needs of the firms. This paper explores a unique data set of matched employer-employee data for Malaysia and Thailand to estimate the wage return to on-the-job training in these two countries. Exploring propensity score matching estimates, we show that the average wage returns to on-the-job training are 7.7% for Malaysia and 4.5% for Thailand. Furthermore, we find evidence that the wage returns to on-the-job training are higher for males than for females in Malaysia and that, for both countries, returns are higher for workers with at least secondary education.

Keywords: matched employer-employee data; wages; on-the-job training (search for similar items in EconPapers)
JEL-codes: J24 J30 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2014-07
New Economics Papers: this item is included in nep-edu, nep-hrm, nep-lab, nep-lma and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Journal Article: The wage returns to on-the-job training: evidence from matched employer-employee data (2014)
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