We use data on Austrian firms and employees to estimate the effects of employer-provided training on productivity, wages, and the inequality of wages within firms. While the average amount spent on employer-provided training is low in general, we find a robust positive elasticity of training on...

Expected earnings and expected returns to education are seen by labor economists as a major determinant of educational attainment. In spite of this, the empirical knowledge about expectations and their formation is scarce. In this paper we report the results of the first systematic study of the...