Abstract

The purpose of this article is to assess the effects of formal and informal on-the-job training on wages and promotions – with a focus on gender differences. For this 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 probability that an employee will engage in on-the-job training and the influence of such training on promotion. We assess the wage returns for on-the-job training and the returns on promotions by means of a wage equation using instruments for these variables.

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