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Occupational mobility and the returns to training

Author

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  • Gueorgui Kambourov
  • Iourii Manovskii
  • Miana Plesca
Abstract
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 there is a potential selection issue—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. Mobilité professionnelle et bénéfices des formations. Les études ayant trait aux bénéfices conférés par les formations professionnelles montrent que lorsque ces dernières sont parrainées par l’employeur, le salaire des participants augmente significativement à l’issue de leur formation. En revanche, lorsqu’elles sont parrainées par le gouvernement, le salaire des participants n’évolue presque pas. Nous affirmons qu’il s’agit là d’un problème de sélection potentiel : dans le cadre des formations parrainées par le gouvernement, la plupart des participants sont très mobiles en emploi tandis que dans le cadre des formations parrainées par l’employeur, les participants sont très stables en emploi. Une plus grande mobilité professionnelle génère une destruction importante du capital humain, et dès lors que l’on tient compte de la baisse concomitante des salaires, nous estimons que les formations parrainées à la fois par l’état et l’employeur ont une incidence très positive sur le capital humain des employés.

Suggested Citation

  • Gueorgui Kambourov & Iourii Manovskii & Miana Plesca, 2020. "Occupational mobility and the returns to training," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(1), pages 174-211, February.
  • Handle: RePEc:wly:canjec:v:53:y:2020:i:1:p:174-211
    DOI: 10.1111/caje.12421
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    Cited by:

    1. Ci, Wen & Galdo, José & Voia, Marcel & Worswick, Christopher, 2013. "Does adult training benefit Canadian workers?," CLSSRN working papers clsrn_admin-2013-42, Vancouver School of Economics, revised 26 Sep 2013.
    2. Alexandre Costa, Rayssa & Nunes de Almeida, Alexandre & Martins Costa, Edward & Urano de Carvalho Castelar, Pablo & de Souza Nunes, Erivelton, 2022. "The effects of occupational mobility on wages of rehabilitated workers in Brazil," World Development, Elsevier, vol. 154(C).
    3. Viju Raghupathi & Jie Ren & Wullianallur Raghupathi, 2023. "Exploring the Nature and Dimensions of Scientific Mobility: Insights From ORCID Database - A Visualization Approach," International Journal of Technology Diffusion (IJTD), IGI Global, vol. 14(1), pages 1-31, January.
    4. Jones, Stephen, 2012. "The Effectiveness of Training for Displaced Workers with Long Prior Job Tenure," CLSSRN working papers clsrn_admin-2012-3, Vancouver School of Economics, revised 29 Jan 2012.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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