Edwin Leuven

An alternative approach to estimate the wage returns to private-sector training

Published in: Journal of Applied Econometrics 23 (2008). 423-434. (with Hessel Oosterbeek)

This paper follows an alternative approach to identify the wage effects of private-sector training. The idea is to narrow down the comparison group by only taking into consideration the workers who wanted to participate in training but did not do so because of some random event. This makes the comparison group increasingly similar to the group of participants in terms of observed individual characteristics and the characteristics of (planned) training events. At the same time the point estimate of the average return to training consistently drops from a large and significant return to a pointrnestimate close to zero.

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