A New Approach to estimate the Wage Returns to Work-related Training

Edwin Leuven and Hessel Oosterbeek

No 02-091/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper proposes a new approach to identify the wage e ects of training.The idea is to narrow down the comparison group by only taking into consideration theworkers who wanted to participate in training but did not do so because of some randomevent. The point estimate of the return to training consistently drops when restrictingthe comparison group this way. While the OLS estimate of the return to training participationis significantly positive, this is no longer the case when we use the new comparisongroup. This outcome suggests that a large share of what is usually interpreted as returnsto training is actually the return to some unobservable characteristic.

See also the article in Journal of Applied Econometrics, 2008, 23(4), 423-34.

Date: 2002-09-23
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Citations: View citations in EconPapers (18)

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Working Paper: A New Approach to Estimate the Wage Returns to Work-Related Training (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20020091

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