Occupational mobility and the returns to training |
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Authors: | Gueorgui Kambourov Iourii Manovskii Miana Plesca |
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Affiliation: | 1. Department of Economics, University of Toronto;2. Department of Economics, University of Pennsylvania;3. Department of Economics, University of Guelph |
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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 there is a potential selection issue—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. |
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