Learning-by-Doing vs. On-the-Job Training: Using Variation Induced by the EITC to Distinguish between Models of Skill Formation

Learning-by-Doing vs. On-the-Job Training: Using Variation Induced by the EITC to Distinguish between Models of Skill Formation
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边做边学与在职培训:利用 EITC 引起的变异来区分技能形成模型

DOI:
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发表时间:
2002
期刊:
影响因子:
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通讯作者:
Ricardo Cossa
Ricardo Cossa
中科院分区:
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文献类型:
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作者:
J. Heckman;L. Lochner;Ricardo Cossa

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This paper investigates the impact of wage subsidies on skill formulation. We analyze two prototypical models of skill formation: (a) a learning-by-doing model and (b) an on-the-job training model. We develop conditions on the pricing of jobs under which the two models are equivalent. In general they are different and have different implications of wage subsidies on skill formation. On-the-job training models predict that wage subsidies reduce skill formation. Learning-by-doing models predict the opposite. The provisional evidence favors the learning-by-doing model. We apply our estimates to investigate the impact of the EITC on skill formation. We estimate that the EITC reduced the long term wages of participants with low levels of education.