The wage returns to on-the-job training: evidence from matched employer-employee data

IZA Journal of Labor & Development

Table 2 Average marginal effects and asymptotic errors from the worker level probit for participation in training

	Malaysia		Thailand
	Coefficient	SE	Coefficient	SE
	(1)	(2)	(3)	(4)
Degree	0.523***	[0.186]	0.426**	[0.215]
Diploma	0.608***	[0.180]	0.353	[0.215]
Upper secondary	0.458***	[0.172]	0.226	[0.212]
Lower secondary	0.266	[0.172]	0.114	[0.211]
Primary	0.036	[0.176]	-0.034	[0.209]
Vocational education	0.101**	[0.049]	-0.015	[0.059]
Woman	-0.071	[0.038]	-0.072*	[0.030]
Age of worker	0.020	[0.019]	0.020	[0.016]
Tenure with the firm	0.069***	[0.001]	0.100***	[0.008]
Potential experience	-0.032***	[0.009]	-0.003	[0.008]
Single	-0.146***	[0.045]	0.022	[0.033]
Manager	0.060	[0.066]	-0.087	[0.070]
Professional	0.118	[0.078]	-0.055	[0.059]
Skill production	-0.017	[0.054]	0.181***	[0.046]
Unskilled production	-0.269***	[0.062]	0.225***	[0.047]
Apprentice	0.506**	[0.204]	-0.234	[0.174]
Unionized	0.531***	[0.088]	0.628***	[0.144]
Computer	0.108***	[0.040]	0.143***	[0.040]
Bank account	-0.040	[0.095]	0.475***	[0.052]
Transaction internet	0.277***	[0.095]	0.193	[0.141]
Training at the previous firm	0.793***	[0.048]	0.607***	[0.035]
Firm base specification?	Yes		Yes
Observations	6,679		9,418

Source: Authors’ calculations based on the Enterprise Surveys (World Bank).
Note: The dependent variable is a dummy variable that assumes the value 1 if the worker received any formal training after joining the firm. The table reports the marginal effects (at mean values) on the firm's propensity to train from probit regressions (equation 3 in the text). The regressions control for several firm level characteristics, as it is listed in the specification reported in column (7) of Tables A5 and A6 of the Appendix. * significant at 10%, ** significant at 5%, *** significant at 1%. Columns (1) and (3) report the coefficient of the variable, and columns (2) and (4) report standard errors. These are the same coefficients as column (5) in Tables A7 and A8 of the Appendix.