The effect of further training on wage growth in West Germany, 1984-1992

In this paper, we use data from the German Socio-Economic Panel (GSOEP) to examine the effect of further training on wage growth in West Germany for the period 1984 to 1992. After controlling for the endogeneity of the training participation decision and the presence of unobserved fixed effects, we estimate a wage growth equation which reveals that further training positively affects wage growth. However, significant differences regarding the effectiveness of further training exist between male and female workers. Our results complement the findings of previous studies supporting the view that further training enhances gender inequality in the German labour market.