The Effects of Occupation on Job Training Opportunities and Wages
According to human capital theory, workers who possess human capital and job skills earn higher wages. As a matter of course, human capital and skills are improved through work experience. Many previous studies reveal that more educated workers earn higher wages and that workers with more years of experience also earn higher wages. In this paper, I empirically analyze how educational background and occupation affect job training opportunities. I also examine how differences in job training opportunities affect wage differentials across occupations and across genders. This paper uses the random effects ordered probit model to analyze the effects of educational attainment and occupation on job training opportunities and uses the random effects model to estimate wage equations. From the estimation results, I find that job training opportunities differ according to gender and occupation. Male workers in sales occupations are provided with fewer training opportunities, while female workers in service occupations are provided with more training opportunities. Both male and female workers in professional and engineering occupations are provided more training opportunities than those in other occupations. Moreover, I find that job training opportunities strengthen the effect of work experience on the wages of male workers.
Key wordshuman capital education job training occupation wage
JEL Classification CodeC23 C25 I25 J31
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I would like to thank anonymous referees of this journal and participants of The 13th International Conference of the Japan Economic Policy Association for many helpful and insightful comments. All remaining errors are the author’s responsibility.
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