Skills Mismatch and Returns to Training in Australia:Some New Evidence

George Messinis and Nilss Olekalns ()

No 997, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: This paper utilises Australian data to evaluate the effect of firm-provided job training on labour income. It also examines whether training can shed light on the effects of skill-job mismatch. We employ the Heckman selection model to account for selection bias in training as well as work participation. The evidence shows that training has a significant positive impact on wages. Also, training ameliorates the disadvantage associated with the mismatch between formal education and required education. In addition, training is most valuable to the undereducated and young workers, and assists in the restoration and replenishment of human capital

Keywords: Training; Education; Overeducation; Undereducation; Earnings; Human capital depreciation (search for similar items in EconPapers)
JEL-codes: I21 J24 J30 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2007
New Economics Papers: this item is included in nep-edu, nep-hrm and nep-lab
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:mlb:wpaper:997

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