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Workplace training in Myanmar: Determinants and wage returns

Author

Listed:
  • Henrik Hansen

    (Department of Economics, University of Copenhagen, Denmark)

  • S Kanayade

    (CESD, Myanmar)

  • John Rand

    (Department of Economics, University of Copenhagen, Denmark)

  • Neda Trifkovic

    (Department of Economics, University of Copenhagen, Denmark)

Abstract
Using linked employer-worker panel data from Myanmar, we estimate wage returns to workplace training. First, we document a low prevalence of training in manufacturing enterprises. Second, we find the wage premium associated with training of about 7%, which is in the range found in other South-East Asian countries. Third, we show that workplace training is offered selectively to workers and when this is the case, the wage gap between trained and untrained workers doubles. Fourth, we find that previous training does not contribute to higher present wage, which indicates low transferability of workplace training in Myanmar. While this setup may benefit employers, workers get short-lived benefits from training, which do not carry throughout the working life. Fifth, we find a convex profile of the returns to training with respect to education and that specific industries such as food, apparel and printing lend themselves more to the benefits from training. Considering the wage return as a lower bound of productivity gains from training, our results suggest that government support of workplace training programs could help increase performance of the manufacturing sector in Myanmar.

Suggested Citation

  • Henrik Hansen & S Kanayade & John Rand & Neda Trifkovic, 2021. "Workplace training in Myanmar: Determinants and wage returns," DERG working paper series 21-10, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    • Handle: RePEc:kud:kuderg:2110
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    File URL: https://www.econ.ku.dk/derg/wps/10-2021.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    training; wage; manufacturing; myanmar;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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