The Returns to Continuous Training in Germany: New Evidence from Propensity Score Matching Estimators

Mühler, Grit; Beckmann, Michael; Schauenberg, Bernd

doi:10.2139/ssrn.1008452

Cited by 4 publications

(9 citation statements)

References 50 publications

(26 reference statements)

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“…In the OLS model in Columns D and E of Table 3, participation in training was related to an increase of 12 percentage points in log hourly wages, which dropped to four percentage points when job characteristics were included. This is in line with previous cross-sectional analyses of training effects on wages (e.g., [28]). The specification in Columns F additionally included a lag in log hourly wages to take account of state dependence in wages.…”

Section: Resultssupporting

confidence: 91%

“…Moreover, our findings are consistent with the majority of studies conducted in Germany, which have revealed that the wage returns to training are small or non-existent [22, 24–26, 29]. Larger wage returns to training have been found only in a few studies, yet these diverging results may be explained by the fact that these studies focused on specific age groups (i.e., 20-44years; [27]) or a specific form of training (i.e., general training; [28]). The close correspondence between our findings and previous ones also enhances confidence in our findings concerning literacy; if results regarding wages are similar to previous findings, it seems highly unlikely that our findings regarding literacy skills are driven by idiosyncrasies of the current sample, training measure, or analytical approach.…”

Section: Resultsmentioning

confidence: 99%

“…However, there are some exceptions: Using data from the German Socio-Economic Panel (SOEP), Buechel and Pannenberg [27] identified a wage premium of training participation of roughly five percentage points for prime-age workers aged between 20 and 44 years. Using the same data set, Muehler, Beckmann and Schauenberg [28] found statistically significant wage effects of around six percentage points. Another recent study by Ehlert [29] using data from the German National Educational Panel Study (NEPS) found that employer-financed training led to a wage increase of roughly one percent.…”

Section: Can Job-related Training Foster Literacy Skills? Theory and mentioning

confidence: 99%

“…Another approach to identifying causal effects of training on wages while taking into account time- varying unobserved factors and reverse causality is to use an instrumental variable (IV) approach (see, e.g., [24, 43]). Further approaches dealing with the issue of selection into training are Heckman selection models [40], matching procedures [28], and control-group approaches [22, 41]. However, to the best of our knowledge, none of the previous large-scale studies on skills (as opposed to wages) as an outcome of training has applied such causal identification strategies.…”

Section: Can Job-related Training Foster Literacy Skills? Theory and mentioning

confidence: 99%

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Self-perfection or self-selection? Unraveling the relationship between job-related training and adults’ literacy skills

Gauly

Lechner

2019

PLoS ONE

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Can participation in job-related training contribute to the formation and maintenance of adults’ literacy skills? Although evidence suggests that participation in training is related to higher literacy skills, it remains unclear whether this association reflects a causal effect of training participation on literacy (training effects), results from the self-selection of more high-skilled individuals into training (selection effects), or is due to other sources of endogeneity (e.g., omitted variable bias). To unravel these possibilities, we used data from the Programme for the International Assessment of Adult Competencies (PIAAC) and its German follow-up, PIAAC-Longitudinal (PIAAC-L). As these unique data offer repeated measures of literacy skills, spaced three years apart, in a large and representative sample, they allowed us to disentangle training effects from selection effects and to account for potential endogeneity. Analyses revealed that, even after taking account of formal education and a host of job characteristics, individuals with higher literacy skills were more likely to participate in training. By contrast, no evidence for effects of training on literacy skills emerged in any of our models, which comprised lagged-dependent, fixed effects, and instrumental-variable models. These findings suggest that, rather than job-related training contributing to literacy development, individuals with higher literacy skills are more likely to participate in training.

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Section: Resultssupporting

confidence: 91%

Section: Resultsmentioning

confidence: 99%

Section: Can Job-related Training Foster Literacy Skills? Theory and mentioning

confidence: 99%

Section: Can Job-related Training Foster Literacy Skills? Theory and mentioning

confidence: 99%

See 2 more Smart Citations

Self-perfection or self-selection? Unraveling the relationship between job-related training and adults’ literacy skills

Gauly

Lechner

2019

PLoS ONE

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“…The results for Germany (cf. no return in Pischke 2001, with 5 % return in Mühler et al 2007) and France (cf. no return in Goux and Maurin 2000, with positive return for job switchers in Fougère et al 2001) are less clear.…”

Section: Introductionmentioning

confidence: 99%

Training and Wages of Older Workers in Europe

Belloni

Villosio

2014

SSRN Journal

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The financial deficits of many social security systems caused by ageing populations and stagnating economies are forcing workers to retire later from the labour market. An extended working life, combined with rapid technological progress in many sectors, is likely making older workers' skills obtained in school obsolete. In this context, lifelong investment in training is widely recognised among the international research and policy community as a key element to increase or at least limit the decline in productivity of older workers. This paper investigates the relationship between training undertaken by European older workers and their wages, relying on the Survey of Health, Ageing and Retirement in Europe. There is no evidence of training wage premium for older workers residing in many European countries including Denmark, Sweden, Belgium, the Netherlands, and Switzerland. Very high premiums are instead found for Austria, Germany, Greece and Italy. It is, however, likely that these high premiums are overestimated due to training endogeneity and sample selection bias.

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Age and Productivity. Human Capital Accumulation and Depreciation

et al. 2013

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This NEUJOBS research report focuses on links between age, productivity and lifelong learning. Various data sources (EU-SILC, LFS, Structure of Earnings Survey, SHARE, ELSA, SHARELIFE) and methodological approaches were used in this report.Our analysis identifies clusters of countries with common characteristics of ageearnings profiles (for certain groups of employees) and allows for an explanation of those differences. Some differences can be attributed to the share of sectors, education types, and occupations in country-specific employment. Others are due to labour market institutions and the (dis)incentives to work at older ages provided by social security systems. Additionally, the dynamics of earnings after age 50 differ less between educational and occupational groups than at earlier ages. We show that the dynamics of average wages are strongly influenced by the timing of entering and leaving labour market. An estimation of the impact of LLL on productivity (measured by earnings) at older ages shows that for employees aged 50+, participation in training increases wages in the short-term. NEUJOBS Working Documents are intended to give an indication of work beingconducted within the NEUJOBS research project and to stimulate reactions from other experts in the field. Texts published in this series are ultimately destined for academic publishing. The views expressed in this paper are those of the authors and do not necessarily represent any institution with which they are affiliated. See the last page for more information about the NEUJOBS project.

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The Returns to Continuous Training in Germany: New Evidence from Propensity Score Matching Estimators

Cited by 4 publications

References 50 publications

Self-perfection or self-selection? Unraveling the relationship between job-related training and adults’ literacy skills

Self-perfection or self-selection? Unraveling the relationship between job-related training and adults’ literacy skills

Training and Wages of Older Workers in Europe

Age and Productivity. Human Capital Accumulation and Depreciation

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