 Training and Human CapitalMiana Plesca (miplesca@uoguelph.ca), Iourii Manovskii and Gueorgui Kambourov No 1263, 2010 Meeting Papers from Society for Economic Dynamics Abstract: The rapidly growing literature studying the returns to firm- and government-sponsored training has made a striking observation. Returns to firm-sponsored training are positive and large while returns to government-sponsored training are low or even negative, especially in the short run. This has sparked considerable research interest in studying why government-sponsored training is so ineffective. In this paper we re-evaluate the motivating evidence. We show that there is a clear selection issue overlooked by the existing literature. In particular, a large fraction of the participants in government-sponsored training are occupation switchers, while most of the participants in firm-sponsored training are occupation stayers. Since a switch of an occupation involves a substantial destruction of human capital, the associated decline in wages needs to be accounted for. Once we do this, we find large positive impact of training on workers' human capital. The magnitude of this effect is similar for training sponsored by the firm and the government. Date: 2010 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:red:sed010:1263 Access Statistics for this paper More papers in 2010 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to econpapers@oru.se.
EconPapers is hosted by the
School of Business at Örebro University.