influence of vocational training on wages and mobility of workers - evidence from poland jacek...
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Influence of vocational training on wages and mobility of workers
- evidence from Poland
Jacek LiwińskiFaculty of Economic Sciences,
University of Warsaw
Human capital theories
Becker’s theory (1962) New theories:
eg. Acemoglu, Pischke (1999)
Different assumptions:– Perfect vs. imperfect competition in the
labour market
University of Ljubljana, 24-25 September 2009
Assumptions:– Perfect competition in the labour
market– Investments in general vs. specific
human capital– Human capital may be specific for
firms, economic sectors or occupations
Becker (1962)
Becker (1962)
Implications:1. Investment in general human capital:– is financed by employee only– increases employee’s wage– has no influence on employee’s mobility
2. Investment in specific human capital:– is financed by both employee and
employer– increases employee’s wage – decreases employee’s mobility
Acemoglu, Pischke (1999)
Assumption: Imperfect competition in the labour market – different reasons: – Cost of changing jobs– Asymmetry of information– Efficiency wages–Human capital is not perfectly
transferable
Acemoglu, Pischke (1999)
Implication: Investment in general human capital may be financed by an employee:– If expected mobility of the employee is
low,– And if the resulting increase in
productivity exceeds the increase in wage
Goals
1. To analyse the influence of vocational training on employees’ mobility between:– firms,– economic sectors,– occupations.
2. To analyse the influence of vocational training on wages in the present job (firm).
Analysis of mobility: (1) Data
Polish Labour Force Survey, 2001-2003:– Employees at the age of 15-59/64,– Quarterly and yearly panels
Analysis of mobility: (2) Dependent variables
Mobility between firms:1 – employee flows to another firm between
period t0 and t1 in a panel,
0 – no flow between firms (base category) Mobility between economic sectors:
1 – employee flows to another economic sector between period t0 and t1 in a panel,
0 – no flow between sectors (base category)
Analysis of mobility: (2) Dependent variables
Mobility between occupations:1 – employee flows to another 5-digit
occupation between period t0 and t1 in a panel,
2 – employee flows to another 3-digit occupation between period t0 and t1 in a panel,
3 – no flow between occupations (base category)
Analysis of mobility: (3) Independent variables
1. Participation in a vocational training
2. General employee’s characteristics (gender, age, level of education, place of residence)
3. Employee’s characteristics associated with present job (job tenure, wages, working time, type of contract, occupation)
4. Characteristics of employer (economic sector, firm size, ownership sector)
Analysis of mobility: (4) Econometric model
In case of mobility between firms and mobility between economic sectors: logit model
In case of mobility between occupations: multinomial logit model
Analysis of mobility: (5) Problem of endogeneity
Employers may be training first of all the least mobile workers
Some trainings may be associated with the willingness to change a job (firm and/or occupation)
Analysis of mobility: (6) Results
1. Mobility between firms:– Neither general nor specific trainings have a
significant influence on mobility between firms
2. Mobility between economic sectors:– General trainings do not have a significant
influence on mobility between sectors– Specific trainings have a negative influence on
mobility between sectors– On average the probability of flowing between
3-digit occupations within a year is 3,2%, while in case of participants of specific training – 1,9%.
Analysis of mobility: (6) Results
3. Mobility between occupations:– General trainings do not have a significant
influence on mobility between occupations– Specific trainings do not have a significant
influence on mobility between 5-digit occupations, but they have a negative influence on mobility between 3-digit occupations.
– On average the probability of flowing between 3-digit occupations within a year is 1,2%, while in case of participants of specific training – 0,6%.
Analysis of wages: (1) Data
Polish Labour Force Survey, 2001-2003:– Employees at the age of 15-59/64,– Quarterly and yearly panels
Analysis of wages: (2) Dependent variable
Growth rate of hourly net wage in the period of a quarter or a year after participation in a vocational training.
Analysis of wages: (3) Independent variables
1. Participation in a vocational training
2. General employee’s characteristics (gender, age, level of education, place of residence)
3. Employee’s characteristics associated with present job (job tenure, wages, working time, type of contract, occupation)
4. Characteristics of employer (economic sector, firm size, ownership sector)
Analysis of wages: (4) Econometric model
OLS linear regression
Analysis of wages: (6) Results
1. Participation in general training has a positive impact on wages.
2. Participation in specific vocational training does not have any influence on wages.
Conclusions
The results of the analysis only partially support the predictions of the Becker’s theory.
1. In agreement with the theory:– investments in general training do not have
any influence on worker’s inter-firm mobility and have a positive impact on wages,
– investments in specific human capital significantly decrease the probability of changing an occupation or an economic sector.
Conclusions
2. It is not consistent with the theory that:– investments in specific human capital do not
have any influence on inter-firm mobility,– specific vocational training does not have
any influence on wages.
Thank you for your attention.