Wage Returns to Training Investments: A Panel Data Analysis
DOI:
https://doi.org/10.25115/eea.v28i2%20(2).4695Keywords:
Training, Wages, Panel Data, Instrumental Variables.Abstract
This paper uses data drawn from the European Community Household Panel (INE, 1994-2001) to estimate the effect of labour market training on wage growth for both female and male wage earners in Spain. As these educational investments might be correlated to other unobserved determinants of wage growth, we use the instrumental variable estimator for panel data proposed by Hausman and Taylor (1981). To more precisely measure the effect of training we differentiate among employer-financed and self-financed training as well as indicators, and later include variables for training length and intensity. Our results show that, indeed, training investments provide workers with higher wage increases. This, however, depends on how training is undertaken and how long it takes.
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References
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