TY - JOUR

T1 - Training subsidies and the wage returns to continuing vocational training

AU - Brunello, Giorgio

AU - Comi, Simona Lorena

AU - Sonedda, Daniela

PY - 2012/6/1

Y1 - 2012/6/1

N2 - We use the regional and time variation of training grants in Italy to identify the causal effect of (formal continuing vocational) training on earnings. We estimate log-linear earnings regressions with constant marginal returns to training and find that one additional week of training increases monthly net earnings by 1.36%, substantially less than the 3% or more often found in the literature. Estimated returns vary significantly by firm size, and range from 0.40% in firms with more than 100 employees to 2.51% in smaller firms, the bulk of the Italian private sector. A simple back of the envelope comparison of the marginal costs and benefits of training policy suggests that the latter are higher than the former.

AB - We use the regional and time variation of training grants in Italy to identify the causal effect of (formal continuing vocational) training on earnings. We estimate log-linear earnings regressions with constant marginal returns to training and find that one additional week of training increases monthly net earnings by 1.36%, substantially less than the 3% or more often found in the literature. Estimated returns vary significantly by firm size, and range from 0.40% in firms with more than 100 employees to 2.51% in smaller firms, the bulk of the Italian private sector. A simple back of the envelope comparison of the marginal costs and benefits of training policy suggests that the latter are higher than the former.

U2 - 10.1016/j.labeco.2012.03.002

DO - 10.1016/j.labeco.2012.03.002

M3 - Journal article

VL - 19

SP - 361

EP - 372

JO - Labour Economics

JF - Labour Economics

SN - 0927-5371

IS - 3

ER -