Estimating complementarity between education and training

Christian Belzil (1, 2, 3, 4) , J. Hansen (2, 4, 5, 6) , Nicolai Kristensen (7, 8)

1 X-DEP-ECO - Département d'Économie de l'École Polytechnique
2 IZA
3 ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique
4 CIREQ
5 CIRANO - Montréal
6 Department of Economics, Concordia University
7 Danish Institute of Governmental Research
8 Aarhus University [Aarhus]

In this paper, we formulate and estimate a structural model of post-schooling training that explicitly allows for possible complementarity between initial schooling levels and returns to training. Precisely, the wage outcome equation depends on accumulated schooling and on the incidence of training. The effect of training on wage growth depends on individual permanent endowments as well as on education. We find evidence of statistically significant complementarity, i.e. the higher educated receive the highest return to the MBA-type training considered here.

Mots clés: Skill Complementarity; Dynamic Treatment Effects; Dynamic Programming; Random Coefficients

Domaines: Gestion et management; Science politique

Christian Belzil, J. Hansen, Nicolai Kristensen. Estimating complementarity between education and training. 2009. ⟨hal-00365698⟩