IDEAS home Printed from https://ideas.repec.org/a/taf/edecon/v24y2016i3p261-279.html
   My bibliography  Save this article

Revisiting the complementarity between education and training -- the role of job tasks and firm effects

Author

Listed:
  • Katja Görlitz
  • Marcus Tamm

Abstract

This paper addresses the question to what extent the strong positive correlation between education and training can be attributed to differences in individual-, job- and firm-specific characteristics. The novelty of this paper is to analyze previously unconsidered characteristics, in particular, job tasks and firm-fixed effects. The results show that once job tasks are controlled for, the difference in training participation between educational groups drops considerably. In contrast, firm-fixed effects only play a minor role. Moreover, we show that workers performing nonroutine tasks are considerably more likely to participate in training than workers with routine tasks.

Suggested Citation

  • Katja Görlitz & Marcus Tamm, 2016. "Revisiting the complementarity between education and training -- the role of job tasks and firm effects," Education Economics, Taylor & Francis Journals, vol. 24(3), pages 261-279, June.
    • Handle: RePEc:taf:edecon:v:24:y:2016:i:3:p:261-279
    DOI: 10.1080/09645292.2015.1006182
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09645292.2015.1006182
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09645292.2015.1006182?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Jörn-Steffen Pischke, 2001. "Continuous training in Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(3), pages 523-548.
    3. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory and Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 79-119.
    4. Goux, Dominique & Maurin, Eric, 2000. "Returns to firm-provided training: evidence from French worker-firm matched data1," Labour Economics, Elsevier, vol. 7(1), pages 1-19, January.
    5. David H. Autor & Michael J. Handel, 2013. "Putting Tasks to the Test: Human Capital, Job Tasks, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 59-96.
    6. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    7. Katz, Eliakim & Ziderman, Adrian, 1990. "Investment in General Training: The Role of Information and Labour Mobility," Economic Journal, Royal Economic Society, vol. 100(403), pages 1147-1158, December.
    8. Görlitz, Katja, 2011. "Continuous training and wages: An empirical analysis using a comparison-group approach," Economics of Education Review, Elsevier, vol. 30(4), pages 691-701, August.
    9. Yun, Myeong-Su, 2004. "Decomposing differences in the first moment," Economics Letters, Elsevier, vol. 82(2), pages 275-280, February.
    10. Chang, Chun & Wang, Yijiang, 1996. "Human Capital Investment under Asymmetric Information: The Pigovian Conjecture Revisited," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 505-519, July.
    11. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 339-376.
    12. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    13. Lisa M. Lynch & Sandra E. Black, 1998. "Beyond the Incidence of Employer-Provided Training," ILR Review, Cornell University, ILR School, vol. 52(1), pages 64-81, October.
    14. Katz, Eliakim & Ziderman, Adrian, 1990. "Shared investment in general training : the role of information," Policy Research Working Paper Series 535, The World Bank.
    15. Mark A. Loewenstein & James R. Spletzer, 1999. "General and Specific Training: Evidence and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 34(4), pages 710-733.
    16. Kenn Ariga & Giorgio Brunello, 2006. "Are Education and Training Always Complements? Evidence from Thailand," ILR Review, Cornell University, ILR School, vol. 59(4), pages 613-629, July.
    17. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352-352.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tobias Schultheiss & Uschi Backes-Gellner, 2021. "Different degrees of skill obsolescence across hard and soft skills and the role of lifelong learning for labor market outcomes," Economics of Education Working Paper Series 0188, University of Zurich, Department of Business Administration (IBW), revised Sep 2022.
    2. Steffes, Susanne & Warnke, Arne Jonas, 2019. "Determinants of work-related training: An investigation of observed and unobserved firm-, job- and worker-heterogeneity," ZEW Discussion Papers 19-022, ZEW - Leibniz Centre for European Economic Research.
    3. Bachmann, Ronald & Demir, Gökay & Green, Colin P. & Uhlendorff, Arne, 2022. "The Role of Within-Occupation Task Changes in Wage Development," IZA Discussion Papers 15647, Institute of Labor Economics (IZA).
    4. Kramer, Anica & Tamm, Marcus, 2016. "Does Learning Beget Learning Throughout Adulthood? Evidence from Employees' Training Participation," IZA Discussion Papers 9959, Institute of Labor Economics (IZA).
    5. Kramer, Anica & Tamm, Marcus, 2018. "Does learning trigger learning throughout adulthood? Evidence from training participation of the employed population," Economics of Education Review, Elsevier, vol. 62(C), pages 82-90.
    6. Tamm, Marcus, 2018. "Training and changes in job Tasks," Economics of Education Review, Elsevier, vol. 67(C), pages 137-147.
    7. Ehlert, Martin, 2020. "No Future, No Training? Explaining Cross-national Variation in the Effect of Job Tasks On Training Participation [Keine Zukunft, keine Weiterbildung? Zur Erklärung von Länderunterschieden im Effekt," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 72(S1), pages 483-510.
    8. Hazrul Shahiri & Kamal Azri Husin & Wye Chung Khain, 2023. "The Effect of Job Rotation in a Fixed Wage Setting Model," SAGE Open, , vol. 13(1), pages 21582440231, February.
    9. Neumann, Uwe, 2020. "Lebenslanges Lernen als Standortfaktor? Weiterbildungschancen im Vergleich der deutschen Bundesländer," RWI Materialien 138, RWI - Leibniz-Institut für Wirtschaftsforschung.
    10. Katja Görlitz & Sylvi Rzepka, 2017. "Regional training supply and employees’ training participation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 281-296, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dietz, Daniel & Zwick, Thomas, 2016. "The retention effect of training: Portability, visibility, and credibility," ZEW Discussion Papers 16-011, ZEW - Leibniz Centre for European Economic Research.
    2. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    3. Rao, Neel, 2015. "General training in labor markets: Common value auctions with unobservable investment," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 19-45.
    4. Görlitz, Katja & Tamm, Marcus, 2011. "Revisiting the Complementarity between Education and Training – The Role of Personality, Working Tasks and Firm Effects," Ruhr Economic Papers 307, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Cecilia ALBERT & Carlos GARCÍA-SERRANO & Virginia HERNANZ, 2010. "On-the-job training in Europe: Determinants and wage returns," International Labour Review, International Labour Organization, vol. 149(3), pages 315-341, September.
    6. Colleen Flaherty Manchester, 2012. "General Human Capital and Employee Mobility: How Tuition Reimbursement Increases Retention through Sorting and Participation," ILR Review, Cornell University, ILR School, vol. 65(4), pages 951-974, October.
    7. Görlitz Katja, 2010. "The Development of Employers’ Training Investments Over Time – A Decomposition Analysis Using German Establishment Data," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(2), pages 186-207, April.
    8. Rita Asplund, 2005. "The Provision and Effects of Company Training: A Brief Review of the Literature," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 47-73.
    9. repec:zbw:rwirep:0087 is not listed on IDEAS
    10. Katja Goerlitz, 2009. "The Development of Employers’ Training Investments Over Time – A Decomposition Analysis Using German Establishment Data," Ruhr Economic Papers 0087, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    11. Katja Görlitz & Marcus Tamm, 2011. "Revisiting the Complementarity between Education and Training – The Role of Personality, Working Tasks and Firm Effects," Ruhr Economic Papers 0307, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    12. Picchio, Matteo & van Ours, Jan C., 2011. "Market imperfections and firm-sponsored training," Labour Economics, Elsevier, vol. 18(5), pages 712-722, October.
    13. Pfeifer, Christian, 2013. "Intra-firm Wage Compression and Cost Coverage of Training: Evidence from Linked Employer-Employee Data," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80030, Verein für Socialpolitik / German Economic Association.
    14. Filipe Almeida‐Santos & Karen A. Mumford, 2004. "Employee Training in Australia: Evidence from AWIRS," The Economic Record, The Economic Society of Australia, vol. 80(s1), pages 53-64, September.
    15. Jung-Seung Yang, 2022. "Dynamics of Firm’s Investment in Education and Training: An Agent-based Approach," Computational Economics, Springer;Society for Computational Economics, vol. 60(4), pages 1317-1351, December.
    16. repec:zbw:rwirep:0307 is not listed on IDEAS
    17. Koray Sayili, 2020. "Retaining skilled employees: A human capital model with innovation and entrepreneurship," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 911-923, September.
    18. Laura Abramovsky & Erich Battistin & Emla Fitzsimons & Alissa Goodman & Helen Simpson, 2011. "Providing Employers with Incentives to Train Low-SkilledWorkers: Evidence from the UK Employer Training Pilots," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 153-193, January.
    19. Michael Gerfin & Robert E. Leu & Reto Nyffeler, 2003. "Berufliche Weiterbildung in der Schweiz," Diskussionsschriften dp0318, Universitaet Bern, Departement Volkswirtschaft.
    20. Stefan Bauernschuster & Oliver Falck & Stephan Heblich, 2009. "Training and Innovation," Journal of Human Capital, University of Chicago Press, vol. 3(4), pages 323-353.
    21. Yanick Labrie & Claude Montmarquette, 2005. "La formation qualifiante et transférable en milieu de travail," CIRANO Project Reports 2005rp-04, CIRANO.
    22. Marco Caliendo & Deborah A. Cobb-Clark & Cosima Obst & Helke Seitz & Arne Uhlendorff, 2022. "Locus of Control and Investment in Training," Journal of Human Resources, University of Wisconsin Press, vol. 57(4), pages 1311-1349.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:edecon:v:24:y:2016:i:3:p:261-279. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CEDE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.