eprintid: 2661 rev_number: 16 eprint_status: archive userid: 150 dir: disk0/00/00/26/61 datestamp: 2007-04-23 12:00:00 lastmod: 2015-07-23 09:33:25 status_changed: 2008-01-09 13:40:40 type: working_paper metadata_visibility: show item_issues_count: 0 creators_name: Adda, J. creators_name: Dustmann, C. creators_name: Meghir, C. creators_name: Robin, J. creators_id: JADDA78 creators_id: CDUST02 creators_id: CHDME77 creators_id: JMROB32 title: Career progression and formal versus on-the-job training ispublished: pub subjects: 12055 subjects: 12000 divisions: F24 abstract: We develop a dynamic discrete choice model of training choice, employment and wage growth, allowing for job mobility, in a world where wages depend on firm-worker matches, as well as experience and tenure and jobs take time to locate. We estimate this model on a large administrative panel data set which traces labour market transitions, mobility across firms and wages from the end of statutory schooling. We use the model to evaluate the life-cycle return to apprenticeship training and find that on average the costs outweigh the benefits; however for those who choose to train the returns are positive. We then use our model to consider the long-term lifecycle effects of two reforms: One is the introduction of an Earned Income Tax Credit in Germany, and the other is a reform to Unemployment Insurance. In both reforms we find very significant impacts of the policy on training choices and on the value of realised matches, demonstrating the importance of considering such longer term implications. date: 2006-08 date_type: published publisher: Institute for Fiscal Studies official_url: http://dx.doi.org/10.1920/wp.ifs.2006.0616 vfaculties: VSHS oa_status: green language: eng primo: open primo_central: open_green lyricists_name: Adda, J lyricists_name: Dustmann, C lyricists_name: Meghir, C lyricists_name: Robin, J lyricists_id: JADDA78 lyricists_id: CDUST02 lyricists_id: CHDME77 lyricists_id: JMROB32 full_text_status: public series: IFS Working Papers number: W06/16 place_of_pub: London, UK issn: 1742-0415 citation: Adda, J.; Dustmann, C.; Meghir, C.; Robin, J.; (2006) Career progression and formal versus on-the-job training. (IFS Working Papers W06/16). Institute for Fiscal Studies: London, UK. Green open access document_url: https://discovery.ucl.ac.uk/id/eprint/2661/1/2661.pdf