Estimating the return to training and occupational experience: The case of female immigrants

Sarit Cohen-Goldner, Zvi Eckstein

Research output: Contribution to journalArticlepeer-review

29 Scopus citations

Abstract

We formulate a dynamic discrete choice model of training and employment to measure the personal and social benefits from government provided training for a sample of high-skilled female immigrants from the Former Soviet Union in Israel. We find that training has a significant impact on the mean offered wage in white-collar occupations, but not in blue-collar occupations. Training substantially increases the job-offer rates in both occupations. Counterfactual policy simulations show a substantial social gain from increasing the access to training programs, and the estimated model provides a good fit for within-sample, out-of-sample and aggregate trends using cross-sectional survey data.

Original languageEnglish
Pages (from-to)86-105
Number of pages20
JournalJournal of Econometrics
Volume156
Issue number1
DOIs
StatePublished - May 2010

Bibliographical note

Funding Information:
We received valuable comments from Chemi Gotlibovski, Bob LaLonde, Osnat Lifshitz and Yoram Weiss. Tali Larom provided excellent research assistance. Financial support from the Israeli Science Foundation grant # 884/01 is greatly appreciated. We also thank the Sapir Center for Development at Tel-Aviv University, the Falk Institute for Economic Research, the Ministry of Absorption and the Manpower Planning Authority in the Ministry of Industry, Trade and Labor for their financial support.

Keywords

  • Immigration
  • Occupation
  • Training
  • Transitions
  • Welfare

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