Training and progression in the labour market (original) (raw)
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The Impact of Structured Training on Workers’ Employability and Productivity
1. While the better educated are more likely to participate in training, overall results on the estimation of the determinants of training outcomes indicate that relatively low paid workers are the ones that benefit most from training. Also, workers who have worked on the job for 1 to 10 years are likely to have the most successful training. Age, education, or gender matters in a few training outcomes including feeling employable, getting a new job and refreshing knowledge and skills. 2. The following are key results derived from our empirical model on the impact of training due to different socio-demographic and employment related characteristics: Training Participation Well educated individuals and those with higher earnings are much more likely to participate in training programs than others. Age has a small positive impact on training participation for workers who are under 37 years old. However, the effect becomes negative for older workers. This might be due to employers having less incentive to send their senior workers for training, either due to the higher opportunity cost or the narrower time horizon of reaping the benefits out of the training program. The results are however not statistically significant. Occupational affiliations of the workers have a significant impact on their training participation as well. Broadly, production & related workers are most likely to engage in training. Compared to them, "working proprietors" and "managers and administrators" are less likely to participate in any type of training. This is due to the fact that both the direct and opportunity costs of training are very high for these workers. Employers (with employees) are less likely to participate than employees and self-employed workers (without any employees). Females are more likely to participate in training programs, but the difference between males and females is not statistically significant even at the 10% level. Married workers seem to be less likely to participate in training programs, but the difference between married and single is only significant at the 10% level. Training Outcomes Broadly, most respondents provided positive responses to training outcomes. The two most common outcomes cited were that training helped them do their jobs better and refreshed their knowledge and skills. Specifically, we find that workers with relatively low earnings and have worked for 5 to 10 years (older workers) are more likely to view that training helps them in doing their current job better. This set of workers is the best candidates to be sent for training so that they can do their current job better. Those with higher education tend to feel more employable in other jobs after training. However, beyond 14 years in education (or roughly upper secondary level), the relationship becomes negative. Similarly, workers with low earnings are more likely to feel that training makes them more employable in other jobs. Workers in occupational groups such as labourers, cleaners, and other manual workers are most likely to feel employable in other jobs after training. Temporary and part-time workers also think likewise. However, findings for this outcome must be approached with caution as much will depend on the objectives of training. Lower paid workers are more likely to experience a pay rise or promotion after training, similar to workers who have worked on the job for 1 to 10 years. By occupation, workers who are engaged as managers & administrators, professionals, or associate professionals and technicians are least likely experience a pay rise or promotion after undergoing training. This could be due to the fact that they are already earning a relatively high income. Men are more likely to get a new job after going for training than women. This is similarly the case for temporary and part-time workers compared to full-time permanent workers. But workers with higher income are less likely to get a new job after training. Again, results for this outcome have to be approached with caution as the outcome may reflect their job search activity and the prevailing labour market conditions. Younger (below mid-30s) and higher educated workers are more likely to feel that training helps them refresh knowledge and skills. Workers in public administration and defence, health and social works and other community, social and personal service sectors are most likely to feel that training helps them refresh their knowledge and skills as these industries are the ones that require frequent updating of knowledge and retraining. Age has negative effects on a trainee's decision to participate in further training. That is, older trainees are less encouraged to do further training than younger ones. However, the effect of age and other personal characteristics on this outcome is found to be statistically insignificant.
Educational attainment and participation in training
1995
This paper examines the relationship between prior educational attainment and participation in formal and on the job training in Australia. The evidence suggests that the incidence of participation in formal training courses by those with the highest levels of educational attainment was ...
Who pays for general training? New evidence for British men and women
2002
Who Pays for General Training? New Evidence for British Men and Women * We use important new training information from waves 8-10 of the British Household Panel Survey to document the various forms of work-related training received by men and women over the period 1998-2000, and to estimate their impact on wages. We initially present descriptive information about training: we find that most work-related training is viewed by its recipients as general, that the longest training courses are for induction purposes, that the vast majority of training takes place either at the workplace or at the employer's training centre, and that most training is paid for by employers. We then estimate the impact of training-controlling for its financing method-on wages levels and wages growth. We find that employer-financed training increases wages both in the current and future firms, with some evidence that the impact in future firms is larger, especially for accredited training. These results are inconsistent with orthodox human capital theory with no credit constraints, but consistent with the relatively recent training literature on training in imperfectly competitive labour markets. They are also consistent with the hypothesis that firms offer credit-constrained workers binding training contracts whereby firms pay for general training and workers repay the 'loan' by receiving a post-training wage below their marginal product.
Economica, 2001
This paper estimates the impact of work-related training on wage growth over the period 1981±91, using longitudinal data from the National Child Development Study, a cohort of young men aged 23 in 1981. A hurdle Negbin model is used to control for training endogeneity. We find that training incidence has a significant positive effect on wage growth. We also find that young men with a higher level of education are not only more likely to be trained, but are also more likely to experience substantially higher wage growth as a result.
Explaining Cross-Country Differences in Training: Evidence from OECD Countries
… -Supported Training sub-theme of the …, 2005
This paper presents an empirical analysis on the determinants of aggregate levels of training across fourteen OECD countries. Training data comes from the 1994 International Adult Literacy Survey (IALS), which provides highly comparable crosscountry data on the percentage of employed individuals that received job-related training. We use a panel data structure to explain the levels of training across country and age groups from the average literacy skills of the corresponding population subset and other cross-country variables, including indicators of compression in the wage structure, the rate of unionization, the unemployment rate, the level of innovation activity and measures of industrial structure. We find that the average level of literacy skills in each age-group has a positive and highly significant effect on the proportion of workers that receive training, which is consistent with microeconomic evidence on the effect of educational attainment on the probability that workers participate in training. More importantly, our analysis provides evidence on the relation between compression in the wage distribution and training, a relation that has been at the center of the recent literature on training in imperfect labor markets. In particular, we find that compression at the bottom of the wage distribution increases training while compression at the top has the opposite effect. These effects are robust and highly significant across gender and for different age-group samples. Potential policy implications are discussed.
The distribution of adult training in European countries - Evidences from recent surveys
2011
The importance of a highly skilled workforce has become increasingly relevant in the context of the European Union new strategy for smart, sustainable and inclusive growth ‘Europe 2020’. At the individual level, a good education is increasingly decisive for employment prospects and earnings levels. The skills and competences of the workforce are the product of a large variety of learning activities that take place in diverse institutional contexts. While good initial education provides an essential foundation, learning continues through the working years. Policies encouraging wide participation in continuing training are therefore an important component of lifelong learning strategies. Very little is known concerning differences in continuing training or their causes and consequences. Such information would be useful for assessing policy choices related to training, such as whether to encourage an overall increase in training levels or to attempt to redirect training investments tow...
Economics of Education Review, 2010
In this paper we investigate the role of workers' training history in determining current training incidence. The analysis is conducted on an unbalanced sample comprising information on approximately 5000 employees from the first seven waves of the BHPS. Training participation is modelled as a dynamic random effects probit model where the effects of unobserved heterogeneity and initial conditions are accounted for in a fashion consistent with methods proposed by Chamberlain (1984) and Wooldridge (2002) respectively. The results suggest that prior training experience is a significant determinant of a worker's participation in a current training episode comparable with other formal educational qualifications.