DP2428 Continuous Training In Germany

Author(s): Jörn-Steffen Pischke
Publication Date: April 2000
Keyword(s): Human Capital Model, On-The-Job Training, Returns To Training
JEL(s): J24, J31
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=2428

Using data from the German Socio-Economic Panel, this paper analyses the incidence, financing, and returns to workplace training in Germany for the years 1986 to 1989. Much of this training seems general, and is provided to workers by their employer at no direct cost. While workers typically report larger productivity gains from the training during work hours, such training has lower returns than training undertaken during leisure time. Workers with higher earnings growth seem more likely to participate in training. This selection problem is dealt with by estimating models that allow for individual level heterogeneity in earnings growth rates.