The Impacts of Vocational Training on Earnings in Korea: Evidence from the Economically Active Population Survey

Abstract

This paper examines whether and how much vocational training raises an individual's earnings in Korea, using the Economically Active Population Survey. To overcome endogeneity of training, we apply fixed-effects and propensity-score matching (PSM) methods. Fixed-effects (PSM) results suggest that work-related training received in the previous one year increases a worker's monthly earnings by 2.6 to 4.7 (7.5 to 9.8) percent. Taken altogether, work-related training enhances a worker's earnings by a minimum of 2.6 and a maximum of 9.8 percent in Korea.

Keywords

• 직업훈련(Vocational Training)
• 임금효과(Wage Effect)
• 성향점수 매칭법(Propensityscore Matching)