Returns to firm-provided training: evidence from French worker-firm matched data

Using worker-firm matched data, we study the incidence and the effects of firm-provided training in France. When we use the same kinds of data and models as the existing ones, the estimated impact of training on wages is as high in France as in other countries. When we build on the uniqueness of our French data and control for the selectivity of firms' training practices, the estimated impact of training falls close to zero. The wage differentials observed across trained and untrained workers reflect that individuals who are the most likely to be placed in training programs are also those with the highest unmeasured abilities, (C) 2000 Elsevier Science B.V. All rights reserved. JEL classification: J24; J31.