Working Paper: CEPR ID: DP2428
Authors: Jörn-Steffen Pischke
Abstract: Using data from the German Socio-Economic Panel, this paper analyses the incidence, financing, and returns to workplace training in Germany for the years 1986 to 1989. Much of this training seems general, and is provided to workers by their employer at no direct cost. While workers typically report larger productivity gains from the training during work hours, such training has lower returns than training undertaken during leisure time. Workers with higher earnings growth seem more likely to participate in training. This selection problem is dealt with by estimating models that allow for individual level heterogeneity in earnings growth rates.
Keywords: on-the-job training; human capital; returns to training
JEL Codes: J24; J31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Training Participation (M53) | Higher Earnings Growth (O49) |
| Training During Work Hours (M53) | Larger Productivity Gains (O49) |
| Training During Leisure Time (M53) | Higher Returns (G19) |
| Higher Earnings Potential (J31) | Training Participation (M53) |