Arbeitspapier

The Wage Returns to On-the-Job Training: Evidence from Matched Employer-Employee Data

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Skills shortages and skill mismatch are a pressing concern for policymakers in several developing countries, and in East Asia specifically. Providing on-the-job training can be an effective policy tool to shape the skills of the existent workforce to the specific needs of the firms. This paper explores a unique data set of matched employer-employee data for Malaysia and Thailand to estimate the wage return to on-the-job training in these two countries. Exploring propensity score matching estimates, we show that the average wage returns to on-the-job training are 7.7% for Malaysia and 4.5% for Thailand. Furthermore, we find evidence that the wage returns to on-the-job training are higher for males than for females in Malaysia and that, for both countries, returns are higher for workers with at least secondary education.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 8314

Classification
Wirtschaft
Human Capital; Skills; Occupational Choice; Labor Productivity
Wages, Compensation, and Labor Costs: General
Subject
matched employer-employee data
wages
on-the-job training

Event
Geistige Schöpfung
(who)
Almeida, Rita K.
de Faria, Marta Lince
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2014

Handle
Last update
10.03.2025, 11:43 AM CET

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Object type

  • Arbeitspapier

Associated

  • Almeida, Rita K.
  • de Faria, Marta Lince
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2014

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