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Paper_v3.doc 1 Employer-financed training in Switzerland: Estimation of the Causal Wage Effect with Quasi-Randomization

Title: Paper_v3.doc 1 Employer-financed training in Switzerland: Estimation of the Causal Wage Effect with Quasi-Randomization
Authors: Annina Eymann; Jel-classification I
Contributors: The Pennsylvania State University CiteSeerX Archives
Source: https://espe.conference-services.net/resources/321/2907/pdf/ESPE2012_0602_paper.pdf.
Publication Year: 2012
Collection: CiteSeerX
Subject Terms: employer-financed training; Switzerland; difference-in-difference matching; average treatment effects; quasi-randomization
Description: do not quote or circulate without the permission of the author Switzerland has a very large share of workers following a continuous training. Given the potential selection and endogeneity problem of training analysis, advanced econometrical methods are needed to identify causal wage effects due to training. In this paper, we focus on the wage effect of employer-financed training. Leuven and Oosterbeek (2008) suggest a convincing approach to control for the potential endogeneity of training decisions. Instead of the commonly used control group of workers without any training participation, a so-called quasi-randomized control group is used. This control group contains only individuals who wanted to participate in training, but could not due to a random event in their lives. This approach leads to a situation that mirrors an experiment. In combination with the panel structure of the data this allows the identification of a causal wage effect. The Swiss Labor Force Survey (SLFS) offers a special module with regard to training in the year 2003. We use a balanced panel covering three years of information to measure the causal effect of employer-financed training. Controlling for endogeneity by using first difference regression analysis and difference-in-difference matching as well as the quasi-randomization of the control group, the causal effect for employer-financed training is no longer statistically significant. This result holds for a one- and a two-year comparison.
Document Type: text
File Description: application/pdf
Language: English
Relation: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.452.4849
Availability: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.452.4849
Rights: Metadata may be used without restrictions as long as the oai identifier remains attached to it.
Accession Number: edsbas.A83FD3FF
Database: BASE