Heterogeneous Returns to Training in Personal Services

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2004
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Zwick, Thomas
Kuckulenz, Anja
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Using the Qualification and Career Survey , a rich German data set with information on 0.1 percent of all individuals employed in Germany in 1998/1999, we calculate the earnings effect of training for different types of employees in the personal services sector. Interacting training with all explanatory variables in the earnings equation allows us to calculate heterogeneous training returns for employees and firms with different characteristics and to estimate an unbiased average treatment effect. The correction for selection into training by using supply-side changes as external instruments leads to a decrease in the training coefficient in the personal services sector, while the coefficient increases in the entire economy. A further comparison of the results for the personal services sector with those for the entire economy reveals that, on average, employees in personal services gain less from participation in training.

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Fachgebiet (DDC)
330 Wirtschaft
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Bildungserträge, Endogenität, Ausbildungsformen, Personaldienstleistungssektor, Continuing training, returns to training, endogeneity, employee heterogeneity, training forms, personal services sector
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ISO 690ZWICK, Thomas, Anja KUCKULENZ, 2004. Heterogeneous Returns to Training in Personal Services
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@techreport{Zwick2004Heter-11966,
  year={2004},
  series={Diskussionspapiere der DFG-Forschergruppe Heterogene Arbeit},
  title={Heterogeneous Returns to Training in Personal Services},
  number={04/12},
  author={Zwick, Thomas and Kuckulenz, Anja}
}
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    <dcterms:abstract xml:lang="eng">Using the  Qualification and Career Survey , a rich German data set with information on 0.1 percent of all individuals employed in Germany in 1998/1999, we calculate the earnings effect of training for different  types  of employees in the personal services sector. Interacting training with all explanatory variables in the earnings equation allows us to calculate heterogeneous training returns for employees and firms with different characteristics and to estimate an unbiased average treatment effect. The correction for selection into training by using supply-side changes as external instruments leads to a decrease in the training coefficient in the personal services sector, while the coefficient increases in the entire economy. A further comparison of the results for the personal services sector with those for the entire economy reveals that, on average, employees in personal services gain less from participation in training.</dcterms:abstract>
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