Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101907
Authors: 
Almeida, Rita K.
de Faria, Marta Lince
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8314
Abstract: 
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.
Subjects: 
matched employer-employee data
wages
on-the-job training
JEL: 
J24
J30
Document Type: 
Working Paper

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