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IZA
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Evidence on Training and Career Paths: Human Capital, Information and Incentives
by
Eduardo Melero Martín
(November 2004)
Abstract:
In this paper, I analyse the relationship between job-related training and career progress of
workers. Most theories of career paths and task assignment rely on human capital
accumulation. Therefore, it seems natural to start assessing the empirical validity of such
theories by analysing the effect of training on the career progress of an individual. I use the
sample of workers from twelve waves of the BHPS (1991-2002) to study the impact of
training over the probability of making a career-improving move, using both between-groups
and within-group panel data estimators. I find that job-related training received by female
workers boosts significantly their chances of being promoted in the next future, while leaving
virtually unaffected the chances of male workers. Then, I investigate how do training and
promotion jointly influence wage growth. The results show that their interaction is, if any,
positive. Additional evidence confirms that the career path of female workers seem to be
importantly affected by the market value of their human capital, while that of men might be
more affected by the role of promotion systems as mechanisms devised to provide
incentives.
Text: See Discussion Paper No. 1377
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