Decomposing ethnic differences in the incidence of employer-provided training in New Zealand

Abstract

Minority workers in New Zealand are significantly less likely to receive employer-provided training. The contribution of differences in average characteristics and differences in the returns to those characteristics across ethnic groups are highlighted in this paper. The decomposition used deals with the index problem that results from the choice of a base group whose coefficients are used to predict the probability of training. The results show that the gap in training probabilities, and the part of this gap due to differences in the returns to characteristics, differs widely between specific minority groups.