The impact of training on the conditional wage distribution in selected service subsectors in Malaysia
Human capital theory postulates that human capital investment has positive impact on wages. Training as one of the human capital components is important for providing the workforce with the necessary skills, enhancing workers skills and productivity and hence raising their wages. The objective of...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2015
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| Online Access: | http://journalarticle.ukm.my/9028/ http://journalarticle.ukm.my/9028/ http://journalarticle.ukm.my/9028/1/jeko_49%281%29-4.pdf |
| Summary: | Human capital theory postulates that human capital investment has positive impact on wages. Training as one of the
human capital components is important for providing the workforce with the necessary skills, enhancing workers skills
and productivity and hence raising their wages. The objective of this paper is to investigate the degree to which workrelated
training affect the location, scale and shape of the conditional wage distribution using quantile regression (QR)
approach. Using data from the Workers’ Competitiveness Survey conducted in the year 2007/2008, we utilize both
ordinary least squares (OLS) and QR regression techniques to estimate associations between work-related training and
wages for selected services subsectors in Malaysia. The results show that the association between number of training
attended and wages are dissimilar across the five quantiles. The training affects not only the location but the scale
and the shape of the conditional wages distribution. We also observe positive and significant training effects as well
as symmetrical-sloping profiles across quantiles of the conditional wages distribution. |
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