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Occupational Mobility and the Returns to Training

Gueorgui Kambourov (), Iourii Manovskii () and Miana Plesca ()

Working Papers from University of Toronto, Department of Economics

Abstract: The literature on the returns to training has pointed out that, immediately following a training episode, wages of participants in employer-sponsored training increase substantially while wages of participants in government-sponsored training hardly change. We argue that a clear selection issue has been overlooked by the literature - most of the government-sponsored trainees are occupation switchers while most participants in employer-sponsored training are occupation stayers. An occupational switch involves a substantial destruction of human capital, and once we account for the associated decline in wages we find a large positive impact of both employer- and government-sponsored training on workers' human capital.

Keywords: Training; Human Capital; Occupational Mobility (search for similar items in EconPapers)
JEL-codes: E24 H59 J24 J31 J62 J68 M53 (search for similar items in EconPapers)
Pages: Unknown pages
Date: 2012-02-08
New Economics Papers: this item is included in nep-hrm and nep-lab
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Journal Article: Occupational mobility and the returns to training (2020) Downloads
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