The Impacts of Vocational Training on Earnings in Korea: Evidence from the Economically Active Population Survey

• Main Authors: Yoo, Gyeong joon, Kang, Chang hui
• Format: Article
• Language: English
• Published: Korea Development Institute 2010-06-01
• Series: KDI Journal of Economic Policy
• Subjects: 직업훈련(Vocational Training); 임금효과(Wage Effect); 성향점수 매칭법(Propensityscore Matching)
• Online Access: https://doi.org/10.23895/kdijep.2010.32.2.27
• ISSN: 2586-2995; 2586-4130

This paper examines whether and how much vocational training raises an individual's earnings in Korea, using the Economically Active Population Survey. To overcome endogeneity of training, we apply fixed-effects and propensity-score matching (PSM) methods. Fixed-effects (PSM) results suggest that work-related training received in the previous one year increases a worker's monthly earnings by 2.6 to 4.7 (7.5 to 9.8) percent. Taken altogether, work-related training enhances a worker's earnings by a minimum of 2.6 and a maximum of 9.8 percent in Korea.