TY - JOUR
T1 - The wage returns to on-the-job training
T2 - evidence from matched employer-employee data
AU - Almeida, Rita K.
AU - Faria, Marta
N1 - Funding Information:
We thank the anonymous comments of a referee and the editor as well as the financial support provided by the Development Economics Research Support Grant (World Bank). Address: Travessa Palma, 1649–023 Lisboa. E-mail: [email protected], [email protected]. The findings expressed in this paper are those of the author and do not necessarily represent the views of the World Bank. We also thank Leonor Modesto, Miguel Gouveia, Pedro Raposo and participants of the IZA conference, Cape Town 3rd and 4th of May 2010. Responsible editor: Hartmut Lehmann.
Publisher Copyright:
© 2014, Lince de Faria and Almeida; licensee Springer.
Copyright:
Copyright 2016 Elsevier B.V., All rights reserved.
PY - 2014/12/1
Y1 - 2014/12/1
N2 - Skills shortages and skill mismatch are a pressing concern for policymakers in several developing countries, and in East Asia specifically. Providing on-the-job training can be an effective policy tool to shape the skills of the existent workforce to the specific needs of the firms. This paper explores a unique data set of matched employer-employee data for Malaysia and Thailand to estimate the wage return to on-the-job training in these two countries. Exploring propensity score matching estimates, we show that the average wage returns to on-the-job training are 7.7% for Malaysia and 4.5% for Thailand. Furthermore, we find evidence that the wage returns to on-the-job training are higher for males than for females in Malaysia and that, for both countries, returns are higher for workers with at least secondary education. JEL codes: J24; J30
AB - Skills shortages and skill mismatch are a pressing concern for policymakers in several developing countries, and in East Asia specifically. Providing on-the-job training can be an effective policy tool to shape the skills of the existent workforce to the specific needs of the firms. This paper explores a unique data set of matched employer-employee data for Malaysia and Thailand to estimate the wage return to on-the-job training in these two countries. Exploring propensity score matching estimates, we show that the average wage returns to on-the-job training are 7.7% for Malaysia and 4.5% for Thailand. Furthermore, we find evidence that the wage returns to on-the-job training are higher for males than for females in Malaysia and that, for both countries, returns are higher for workers with at least secondary education. JEL codes: J24; J30
KW - Matched employer-employee data
KW - On-the-job training
KW - Wages
UR - http://www.scopus.com/inward/record.url?scp=84983283597&partnerID=8YFLogxK
U2 - 10.1186/2193-9020-3-19
DO - 10.1186/2193-9020-3-19
M3 - Article
AN - SCOPUS:84983283597
SN - 2193-9020
VL - 3
JO - IZA Journal of Labor and Development
JF - IZA Journal of Labor and Development
IS - 1
M1 - 19
ER -
