Returns to Training and Skill Mismatch: Evidence from Australia

This paper utilises Australian data to evaluate the effect of firm-provided job training on labour income. It also examines whether training can shed light on the effects of\ud skill-job mismatch. We employ a trivariate model to account for firm selection bias in training and worker selection in full-time employment participation. The evidence shows that training has a significant positive impact on wages and assists in the augmentation and replenishment of human capital. Further, training ameliorates the disadvantage associated with the mismatch between formal education and required education