Do Lower Expected Wage Benefits Explain Ethnic Gaps in Job-Related Training? Evidence from New Zealand

Many studies show that individuals from ethnic minority groups receive low levels of job-related training, raising the question of whether lower expected wage benefits contribute to this lack of training. In this paper, unit record data are used to examine the effect of job-related training on wages in New Zealand. The results suggest that both the receipt of employer-provided training, and the number of training events, have larger effects on wages for minority workers than they do for white workers. There are no differences across ethnic groups in the wage benefits from other types of training.

[1]  A. Booth,et al.  Who gets over the training hurdle? A study of the training experiences of young men and women in Britain , 1997 .

[2]  Mark B. Stewart,et al.  THE EFFECTS AND DETERMINANTS OF TRAINING , 2009 .

[3]  A. Vandenheuvel,et al.  Participation of non‐English‐speaking‐background immigrants in work‐related training , 1997 .

[4]  Masanori Hashimoto,et al.  Firm-Specific Human Capital as a Shared Investment , 2001 .

[5]  H. Oosterbeek Unravelling supply and demand factors in work-related training , 1998 .

[6]  Mark B. Stewart,et al.  On Least Squares Estimation when the Dependent Variable is Grouped , 1982 .

[7]  S. Hoffman,et al.  On-the-Job Training and Earnings Differences by Race and Sex , 1979 .

[8]  The Returns to On-the-Job Training: Are They the Same for Blacks and Whites?* , 1994 .

[9]  D. Acemoglu,et al.  Beyond Becker: Training in Imperfect Labor Markets , 1998 .

[10]  H. Oosterbeek,et al.  Costs and revenues of investment in enterprise-related schooling. , 1994 .

[11]  R. Flanagan Labor Force Experience, Job Turnover, and Racial Wage Differentials , 1974 .

[12]  Alison L. Booth,et al.  Private Sector Training and Graduate Earnings , 1993 .

[13]  R. Blundell,et al.  Human capital investment: the returns from education and training to the individual, the firm and the economy , 2005 .

[14]  Sheepskin effects and the returns to education in New Zealand: Do they differ by ethnic groups? , 2000 .

[15]  L. Lynch Private-Sector Training and the Earnings of Young Workers , 1992 .

[16]  James R. Spletzer,et al.  Worker Characteristics, Job Characteristics, and the Receipt of On-the-Job Training , 1991 .