IDEAS home Printed from https://ideas.repec.org/a/ucp/jhucap/doi10.1086-678261.html
   My bibliography  Save this article

Postschooling Training Investment and Employer Learning

Author

Listed:
  • Barış Kaymak

Abstract

Wage growth among young workers relates positively to ability and negatively to education, conditional on ability. This was interpreted as evidence for statistical discrimination with employer learning. I show that this pattern is also consistent with a version of the Ben-Porath model of skill formation in which (i) workers differ in their learning ability and (ii) job training is a substitute for formal schooling. Data on job training from the NLSY confirm both modeling extensions for young workers. Nonetheless, for more experienced workers, job training and formal schooling appear to be positively related, even after controlling for ability.

Suggested Citation

  • Barış Kaymak, 2014. "Postschooling Training Investment and Employer Learning," Journal of Human Capital, University of Chicago Press, vol. 8(3), pages 318-349.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/678261
    DOI: 10.1086/678261
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/678261
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/678261
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/678261?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joseph G. Altonji & Charles R. Pierret, 2001. "Employer Learning and Statistical Discrimination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(1), pages 313-350.
    2. Isaac Ehrlich & Jinyoung Kim, 2007. "The Evolution of Income and Fertility Inequalities over the Course of Economic Development: A Human Capital Perspective," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 137-174.
    3. Joseph G. Altonji & James R. Spletzer, 1991. "Worker Characteristics, Job Characteristics, and the Receipt of On-the-Job Training," ILR Review, Cornell University, ILR School, vol. 45(1), pages 58-79, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Jun & Li, Bo, 2020. "Does employer learning with statistical discrimination exist in China? Evidence from Chinese Micro Survey Data," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 319-333.
    2. Gaurab Aryal & Manudeep Bhuller & Fabian Lange, 2022. "Signaling and Employer Learning with Instruments," American Economic Review, American Economic Association, vol. 112(5), pages 1669-1702, May.
    3. Andriana Bellou & Bariş Kaymak, 2021. "The Cyclical Behavior of Job Quality and Real Wage Growth," American Economic Review: Insights, American Economic Association, vol. 3(1), pages 83-96, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard Blundell & Monica Costa-Dias & David Goll & Costas Meghir, 2021. "Wages, Experience, and Training of Women over the Life Cycle," Journal of Labor Economics, University of Chicago Press, vol. 39(S1), pages 275-315.
    2. Braga, Breno, 2018. "Earnings dynamics: The role of education throughout a worker’s career," Labour Economics, Elsevier, vol. 52(C), pages 83-97.
    3. Oreopoulos, Philip & Heisz, Andrew, 2006. "The Importance of Signalling in Job Placement and Promotion," Analytical Studies Branch Research Paper Series 2006236e, Statistics Canada, Analytical Studies Branch.
    4. Devereux, Paul J., 2002. "The Importance of Obtaining a High-Paying Job," MPRA Paper 49326, University Library of Munich, Germany.
    5. Oreopoulos, Philip & Heisz, Andrew, 2006. "Importance des signaux de competence pour l'obtention d'un emploi et de l'avancement," Direction des études analytiques : documents de recherche 2006236f, Statistics Canada, Direction des études analytiques.
    6. Mohrenweiser, Jens & Wydra-Sommaggio, Gaby & Zwick, Thomas, 2014. "Adverse Selection and Information Advantages of Training Firms," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100525, Verein für Socialpolitik / German Economic Association.
    7. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS
    8. Nakabayashi, Masaki, 2011. "Schooling, employer learning, and internal labor market effect: Wage dynamics and human capital investment in the Japanese steel industry, 1930-1960s," MPRA Paper 30597, University Library of Munich, Germany.
    9. Anthony Edo & Nicolas Jacquemet & Constantine Yannelis, 2019. "Language skills and homophilous hiring discrimination: Evidence from gender and racially differentiated applications," Review of Economics of the Household, Springer, vol. 17(1), pages 349-376, March.
    10. Hunt, Jennifer & Laszlo, Sonia, 2005. "Bribery: Who Pays, Who Refuses, What are the Payoffs?," CEPR Discussion Papers 5251, C.E.P.R. Discussion Papers.
    11. Parent, Daniel, 1999. "Wages and Mobility: The Impact of Employer-Provided Training," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 298-317, April.
    12. Patrick Lee O'Halloran, 2008. "Gender Differences in Formal On‐the‐Job Training: Incidence, Duration, and Intensity," LABOUR, CEIS, vol. 22(4), pages 629-659, December.
    13. Donal O'Neill & Olive Sweetman & Dirk van de Gaer, 2000. "Estimating Counterfactual Densities: An application to Black-White Wage Differentials in the U.S," Economics Department Working Paper Series n1040600, Department of Economics, National University of Ireland - Maynooth.
    14. Lin, Dajun & Lutter, Randall & Ruhm, Christopher J., 2018. "Cognitive performance and labour market outcomes," Labour Economics, Elsevier, vol. 51(C), pages 121-135.
    15. Felicia Ionescu, 2011. "Risky Human Capital and Alternative Bankruptcy Regimes for Student Loans," Journal of Human Capital, University of Chicago Press, vol. 5(2), pages 153-206.
    16. Luojia Hu & Christopher Taber, 2011. "Displacement, Asymmetric Information, and HeterogeneousHuman Capital," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 113-152, January.
    17. Oyer, Paul & Schaefer, Scott, 2011. "Personnel Economics: Hiring and Incentives," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 20, pages 1769-1823, Elsevier.
    18. Jäger, Simon & Roth, Christopher & Roussille, Nina & Schoefer, Benjamin, 2021. "Worker Beliefs about Outside Options," IZA Discussion Papers 14963, Institute of Labor Economics (IZA).
    19. J. Michelle Brock & Ralph De Haas, 2023. "Discriminatory Lending: Evidence from Bankers in the Lab," American Economic Journal: Applied Economics, American Economic Association, vol. 15(2), pages 31-68, April.
    20. Morten Størling Hedegaard & Jean-Robert Tyran, 2018. "The Price of Prejudice," American Economic Journal: Applied Economics, American Economic Association, vol. 10(1), pages 40-63, January.
    21. Edward P. Lazear, 1995. "Personnel Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121883, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jhucap:doi:10.1086/678261. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JHC .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.