Abstract
In this paper we study the direct effects of vocational training upon earnings, and bring empirical evidence for the case of Romania. In order to determine whether vocational training generates an increase in earnings, a quantitative analysis is conducted and econometric tools are applied on both a treatment and a control group. Survey micro-datasets are used together with a probit model, a Kernel matching algorithm and an ordered logit. The main findings are consistent with the international literature in the field, arguing in favor of a positive return on training, as higher earnings are to be expected after attending training programs.
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Notes
- 1.
Gross minimum earnings in Romania were 850 lei in January–June 2014, and increased to 900 lei in July 2014, corresponding to a net minimum earnings of around 678 lei.
- 2.
Net average earnings in September 2014 were 1698 lei.
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Acknowledgements
The authors would like to thank the Romanian National Scientific Research Institute for Labor and Social Protection (INCSMPS) for providing access to the micro-survey database. The authors would also like to thank Webster University Thailand for financially supporting this research.
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Popescu, M.E., Paun, RM. (2019). The Financial Benefits of Training on the Labor Market: Evidence from Romania. In: Bilgin, M., Danis, H., Demir, E., Can, U. (eds) Eurasian Economic Perspectives. Eurasian Studies in Business and Economics, vol 11/1. Springer, Cham. https://doi.org/10.1007/978-3-030-18565-7_1
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