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Returns to continuous training in Germany : new evidence from propensity score matching estimators

Mühler, Grit and Beckmann, Michael and Schauenberg, Bernd. (2007) Returns to continuous training in Germany : new evidence from propensity score matching estimators. Basel.

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Official URL: http://edoc.unibas.ch/dok/A4248422

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Abstract

The present paper examines the wage effects of continuous training programs using individual-level data from the German Socio Economic Panel (GSOEP). In order to account for selectivity in training participation we estimate average treatment effects (ATE and ATT) of general and firm-specific continuous training programs using several state-of-the-art propensity score matching (PSM) estimators. Additionally, we also apply a combined matching difference-in-differences (MDiD) estimator to account for unobserved individual characteristics (e.g. motivation, ability). While the estimated ATE and ATT for general training are significant ranging between about 4 and 7.5 %, the corresponding wage effects of firm-specific training are mostly insignificant. Using the more appropriate MDiD estimator, however, we find a more precise and highly significant wage effect of about 5 to 6 %, though only for general training and not for firm-specific training. These results are consistent with standard human capital theory insofar as general training is associated with larger wage increases than firm-specific training. Furthermore, we conclude that firms may intend to use specific training to adjust to new job equirements, while career-relevant changes may be conditioned to general training.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Personal und Organisation (Beckmann)
UniBasel Contributors:Beckmann, Michael
Item Type:Other
Bibsysno:Link to catalogue
Publisher:WWZ
Note:Series: WWZ-Discussionpaper ; 07/04 -- Publication type according to Uni Basel Research Database: Discussion paper / Internet publication
Language:English
Last Modified:31 Dec 2015 10:48
Deposited On:22 Mar 2012 14:18

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