Abstract

The paper focuses on the effects of formal and informal on-the-job training on wages and promotions for men and women. For that purpose, we use the 1999-2000 Canadian Workplace and Employee Survey (WES). Using a simulated maximum likelihood, we estimate a recursive trivariate probit that simultaneously models the both decisions to follow formal and infomal on-the-job training and their impact on promotion process. We evaluate the returns of promotions and of the two kinds of on-the-job training through a Mincer wage equation using instruments for these variables.

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