To test the impact of on-the-job training on the starting wage, Barron, Berger, and Black (1999) employ two data sets: The 1982 EOPP
employer survey mentioned before and the 1992 U.
A strength of the EOPP
data is that they can be used to ascertain whether employers are able to substitute previous training elsewhere for their own training, and a strength of the NLSY data is that they are longitudinal and can therefore be used to analyze job mobility and wage growth both within and across jobs.
Given the similarities of the two data sets, where possible we present results from both the EOPP
and the SBA data.
Section 3 discusses the EOPP
data and defines the variables used in our empirical procedures.
Campbell , using a nonparametric hazard model to analyze dismissals with individual data from the EOPP
survey (described in section II), found that the probability of dismissal depends negatively on the unemployment rate.
Thus, while our results indicate that surveys like EOPP
that focus on the first several weeks or months of tenure will miss most formal on-the-job training, such surveys should still have considerable value for analyzing informal training.
Section II discusses the existing theoretical and empirical research regarding minimum wages, section III presents our empirical procedures, section IV discusses the EOPP
data set and in section V we discuss our results.
survey does have a shortcoming in that it does not provide detailed demographic data on workers, a shortcoming that may be particularly serious when examining gender differences in wages and training (for example, see Blinder 1973).
They use data collected at the sites of the EOPP
(Employment Opportunity Pilot Projects).
Montgomery (1988) used the EOPP
establishment survey to confirm that increases in hiring and training costs significantly reduced the proportion of part-time workers in an establishment's work force.
survey collected data from a sample of 29,620 families in 20 sites in the United States from April through October 1980.
Because it was originally designed to evaluate the Employment Opportunities Pilot Project, the survey is generally referred to as the EOPP