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Table A2 Variable definitions

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

Variable

Definition

Firm training

Dummy variable equal to 1 if the firm offered formal training to its workers in the previous year.

Micro, small, medium, large, and very large

Dummy variables equal to 1 if the total number of employees in the firm is between 1 and 9, between 10 and 49, between 50 and 99, between 100 and 249 or greater than 250, respectively.

Sector

Two digit industries/services: Food Processing; Textiles; Garments; Wood Products/Furniture; Pharmaceuticals/Chemicals; Rubber and Plastics, Household Electrical Appliances; Electronics; Automobiles parts; Machinery and Equipment / Information Technology; Communication Services; Accounting and Related Services; Advertising and Marketing; Business Logistics.

Full foreign-owned

Dummy variable equal to 1 if 100% of the firm's capital is owned by foreigners.

Majority foreign-owned

Dummy variable equal to 1 if more than 50% and less than 100% of the firm's capital is owned by foreigners.

Minority foreign-owned

Dummy variable equal to 1 if more than 0% but less than 50% of the firm's capital is owned by foreigners.

Domestic

Dummy variable equal to 1 if 100% of the firm's capital is owned by domestic entities.

Exporter

Dummy variable equal to 1 if the firm exports are more than 10% of its sales

Share of skilled workers

Percentage of the firm's workforce that are managers, professionals or skilled production workers.

Education labor force

Average years of schooling of the workforce.

Age firm

Year of the survey minus the year when the firm started operations.

Education of manager

Dummy variable equal to 1 if the manager of the firm owns a degree.

New production technology

Dummy variable equal to 1 if the firm introduced in the previous two years a new technology that substantially changed production.

Training in the firm

Dummy variable equal to 1 if the worker received formal training since he joined the firm.

Hourly wage

Hourly wage in USD (exchange rate at the time of the survey)

Ln wage

Natural logarithm of hourly wage.

Woman

Dummy variable equal to 1 if the worker is a woman.

Age of worker

Age of the worker

Level of education

Dummy variables equal to 1 if the highest level of formal education of the worker is a degree, diploma, upper secondary, lower secondary, primary, respectively.

Vocational education

Dummy variable equal to 1 if the worker received vocational education.

Potential experience

Year of the survey minus the year when the worker found his first permanent job.

Tenure with the firm

Year of the survey minus the year when the worker joined the firm.

Single

Dummy variable equal to 1 if the worker is single

Native

Dummy variable equal to 1 if the worker is from the same country were the firm is registered.

Studied abroad

Dummy variable equal to 1 if the worker studied abroad.

Unionized

Dummy variable equal to 1 if the worker belongs to a trade union.

Occupation dummies

Dummy variables equal to 1 if the employee works as a manager, professional, skill production worker, unskilled production worker, non-production worker, apprentice, respectively.

Computer

Dummy variable equal to 1 if the worker owns a personal computer at home.

Bank account

Dummy variable equal to 1 if the worker has a bank account.

Transaction internet

Dummy variable equal to 1 if the worker has ever bought or sold a good through the internet.

Training other firm

Dummy variable equal to 1 if the worker received formal training at the previous employer.

  1. Source: Enterprise Surveys (World Bank), Malaysia (2002) and Thailand (2004).