The Effect of Further Training on Wage Growth in West Germany, 1984-1992.

In this paper, the authors use data from the German Socio-Economic Panel (GSOEP) to examine the effect of further training on wage growth in West Germany for the period 1984 to 1992. After controlling for the endogeneity of the training participation decision and the presence of unobserved fixed effects, the authors estimate a wage growth equation which reveals that further training positively affects wage growth. However, significant differences regarding the effectiveness of further training exist between male and female workers. The authors' results complement the findings of previous studies supporting the view that further training enhances gender inequality in the German labor market. Copyright 1997 by Scottish Economic Society.