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Employer-supported training in Canada and its impact on mobility and wages

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  • Daniel Parent

Abstract

Using information on job histories and on two training questions contained in Statistics Canada's Follow-Up to the School Leavers Survey, this paper seeks to answer three basic questions: 1) what are the characteristics of the trainees?; 2) Does the receipt of employer-supported training cause an increase in the wage paid to those young workers?; and 3) Does it improve the degree of job attachment?; I find that more educated young people are somewhat more likely to be trained than high school dropouts although there is strong evidence of selectivity as employers clearly seem to support training for those that have the most “favorable” characteristics. Also, controlling for unobserved individual characteristics, I find that training has a sizeable wage impact for men while the effect is much more modest for women. Finally, results using Chamberlain (1985) fixed-effects hazard model show that the conditional probability of the employment relationship being terminated decreases substantially for trainees, which is consistent with the notion that the skills learned by trainees may have a sizeable firm-specific component. Copyright Springer-Verlag Berlin Heidelberg 2003

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 28 (2003)
Issue (Month): 3 (July)
Pages: 431-459

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Handle: RePEc:spr:empeco:v:28:y:2003:i:3:p:431-459

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Related research

Keywords: Key words: Training; panel data; JEL classification: J31;

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References

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  1. Acemoglu, Daron & Pischke, Jörn-Steffen, 1996. "Why do Firms Train? Theory and Evidence," CEPR Discussion Papers 1460, C.E.P.R. Discussion Papers.
  2. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-82, June.
  3. Macleod, W.B. & Malcomson, J.M., 1989. "Wage Premiums And Profit Maximization In Efficiency Wage Models," UFAE and IAE Working Papers 114.89, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  4. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
  5. Lynch, Lisa M, 1992. "Private-Sector Training and the Earnings of Young Workers," American Economic Review, American Economic Association, vol. 82(1), pages 299-312, March.
  6. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
  7. Parent, D., 1995. "Wages and Mobility: the Impact of Employer-Provided Training," Cahiers de recherche 9507, Universite de Montreal, Departement de sciences economiques.
  8. David G. Blanchflower & Lisa M. Lynch, 1992. "Training at Work: A Comparison of U.S. and British Youths," NBER Working Papers 4037, National Bureau of Economic Research, Inc.
  9. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, 2nd ed," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, April.
  10. Lynch, Lisa M, 1991. "The Role of Off-the-Job vs. On-the-Job Training for the Mobility of Women Workers," American Economic Review, American Economic Association, vol. 81(2), pages 151-56, May.
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Cited by:
  1. Andries de Grip & Jan Sauermann, 2011. "The effects of training on own and co-worker productivity: Evidence from a field experiment," Natural Field Experiments 00228, The Field Experiments Website.
  2. Michael Beckmann & Grit Muehler & Bernd Schauenberg, 2007. "The Returns to Continuous Training in Germany: New Evidence from Propensity Score Matching Estimators," Working papers 2007/04, Faculty of Business and Economics - University of Basel.
  3. Yanick Labrie & Claude Montmarquette, 2005. "La formation qualifiante et transférable en milieu de travail," CIRANO Project Reports 2005rp-04, CIRANO.

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