Wages are a composite measure of the return to education and the
return to experiences on-the-job. However, work experiences can also be
part of a study curriculum in vocational education and training, as is
the case in the Netherlands. We estimate the return to in-school work
experiences by using Heckman (1979) selection model and Rubin (1974,
2006) matching model. First, we show that both models yield similar and
significant results of +16 percent. Second, we indicate that these models
do not appropriately deal with censored observations in the presence of
an informal market.
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