Training and labor force participation

187 E.T. Hill Economics of Education Review 20 2001 181–191 Table 5 Determinants of wage changes 1967–1984 Independent variables Change in ln wage rates 1967–1984 Coefficient a Age 1967 20.01 2.31 Race white 20.11 3.34 Educational level 1967 20.0002 0.05 Change lived in south 1967–1984 20.02 0.26 20.03 0.42 Years employed 1967–1984 b 0.05 5.60 0.05 5.60 Years employed squared 1967– 20.0001 2.63 20.0001 1.93 1984 Adult education pre ’67 20.05 1.27 20.04 1.08 On-the-job training pre ’67 0.02 0.43 0.03 0.55 Other training pre ’67 20.03 0.76 20.02 0.58 Education 1967–1984 20.03 0.79 20.04 0.84 On-the-job training 1977–1984 0.09 2.61 0.09 2.58 Other training 1977–1984 0.06 1.63 0.06 1.70 Constant 0.90 12.90 1.28 8.24 R 2 0.05 0.07 Number of cases 868 868 a Absolute value of t statistics in parentheses, significance level: 0.01, 0.05, 0.10. b At least 6 months and 35 h. the strongest association with wage growth. The acqui- sition of later education was not associated with increased wages while off-the-job training was mar- ginally significant. 9 The second wage equation in Table 5 includes several additional variables which might affect wage changes. Age and race might affect wage growth if age and race discrimination exist. Age, which might also include atti- tude or other factors affecting productivity, was negative and significant. Non-white women had more wage growth than white women. However controlling for occupation, they had similar wage levels by 1984 Table 4 so that older non- white women were apparently ‘catching up’ during this period. Educational level in 1967 was not significant, probably because better-educated women were paid higher starting wages. Additional analyses using wage observations available for most of the survey years between 1967 and 1984 including education and training reported in 1967 showed no pattern and few significant training variables. The training identified as occurring between 1977 and 1984 displayed no clear pattern with regard to wage changes for each wave of the survey during that time although there is some indication that on-the-job training 9 Splitting education into that acquired before 1977 all edu- cation levels and college the 1977–1984 measure provided no advantage nor did using each wave of the education and training responses separately for wage changes between 1977 and 1984. affected wages immediately while college enhanced wages with a delay. 10 Whether those who receive training are those who would benefit most is difficult to tell since the selection process into training is unknown. Work experience may include the effect of informal on-the-job training which was not surveyed directly.

6. Training and labor force participation

If older women can alleviate their poverty through work, the analysis should focus on factors affecting labor force participation at older ages. Table 6 presents results of a probit analysis using labor force participation in 1984 to measure which women continued to work at later ages. Not surprisingly, older women and those with health problems tended away from labor force partici- pation. The need for income apparently provided an incentive to work at later ages: unmarried women and women with fewer assets tended toward market work. Early strong labor force attachment as measured by years employed full time in 1967, was associated with working 10 On-the-job training obtained in 1981 increased wages between 1979 and 1981 and 1979 and 1982; on-the-job training received in 1982 increased wages in 1981–1982. Reporting col- lege attendance in 1979 was associated with greater wage increases by 1982 and 1984 but not before that. Combining training over a number of years resulted in too few cases to be meaningful. 188 E.T. Hill Economics of Education Review 20 2001 181–191 Table 6 Determinants of 1984 labor force participation Independent variables In labor force 1984 a Coefficient b Age 20.03 3.12 Health problems 1984 20.97 11.86 Race white 0.01 0.07 Never married 1984 0.57 2.56 Marriage ever ended 1984 0.14 1.84 Education level 1967 0.002 0.23 Assets 1984 20.001 1.77 Years employed 1967 c 0.02 2.89 Unemployment rate 1984 20.02 0.90 Ln estimated wage 1967 d 20.06 0.71 Education 1967–1984 0.12 1.06 On-the-job training 1977– 0.87 8.63 1984 Other train. 1977–1984 0.26 2.69 Constant 1.73 3.41 Log likelihood 2799.18 Number of cases 1581 a Employed or unemployed 1984 = 1. b Absolute value of t statistics in parentheses, significance level:0.01, 0.05, 0.10. c At least 6 months and 35 hweek since age 18. d The estimated wage in 1967 was the 1967 wage if one was available. If the first available wage was for 1968, 1969, 1970, 1971, or 1972, that wage was indexed using W t = average hourly earnings in year taverage hourly earnings in 1967. in 1984. The acquisition of both on-the-job and other training was associated with employment while obtaining education later was not. Perhaps taking classes was a substitute for working in the use of these older women’s time. 11

7. Conclusion