Occupational mobility and the returns to training

Aperçu

Résumé (français)

Veuillez noter que les résumés n'apparaissent que dans la langue de la publication et peuvent ne pas avoir de traduction.

Résumé (anglais)

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.