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Men at Work in a Land Down-under

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  • Alison Booth
  • Pamela Katic

Abstract

We use new training data from waves 3-6 of the Household, Income and Labour Dynamics in Australia Survey to investigate the training and wages of full-time men. We explore the extent to which the data are consistent with the predictions of human capital theory or with recent alternative theories based on imperfectly competitive labour markets. According to the raw data, most work-related training received by full-time private sector men is general but it is also paid for by employers. Our fixed effects estimates reveal that this training is associated with higher wages in current and in future firms, and that the effect in future firms is larger and more precisely determined. These results are more consistent with the predictions of human capital theory based on imperfectly competitive labour markets than with the alternative of perfect competition.

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Bibliographic Info

Paper provided by Centre for Economic Policy Research, Research School of Economics, Australian National University in its series CEPR Discussion Papers with number 586.

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Date of creation: Aug 2008
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Handle: RePEc:auu:dpaper:586

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Keywords: work-related training; full-time men; training costs; general human capital; turnover;

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References

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  1. F. Green & Stephen Machin & D. Wilkinson, 1996. "Trade unions and training practices in British workplaces," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 20684, London School of Economics and Political Science, LSE Library.
  2. Lynch, Lisa M, 1992. "Private-Sector Training and the Earnings of Young Workers," American Economic Review, American Economic Association, American Economic Association, vol. 82(1), pages 299-312, March.
  3. Joan R. Rodgers, 2004. "Hourly Wages of full-time and part-time employees in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(2), pages 231-254, June.
  4. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2003. "Training in Europe," IZA Discussion Papers 933, Institute for the Study of Labor (IZA).
  5. Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 16(1), pages 142-71, January.
  6. Alison L. Booth & Mark L. Bryan, 2005. "Testing Some Predictions of Human Capital Theory: New Training Evidence from Britain," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 391-394, May.
  7. Stevens, Margaret, 1994. "A Theoretical Model of On-the-Job Training with Imperfect Competition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 537-62, October.
  8. John M. Barron & Mark C. Berger & Dan A. Black, 1999. "Do Workers Pay for On-The-Job Training?," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 235-252.
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Cited by:
  1. C. Waddoups, 2011. "Firm Size and Work-Related Training: New Evidence on Incidence, Intensity, and Training Type from Australia," Journal of Labor Research, Springer, Springer, vol. 32(4), pages 390-413, December.
  2. Rzepka, Sylvi & Tamm, Marcus, 2013. "Local Employer Competition and Training of Workers," IZA Discussion Papers 7853, Institute for the Study of Labor (IZA).
  3. Christoph Ehlert, 2013. "Did Customers Benefit from the Reorganisation of Customer Management in German Employment Agencies?," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0462, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  4. Gerards Ruud & Grip Andries de & Witlox Maaike, 2012. "Employability-miles and worker employability awareness," ROA Research Memorandum, Maastricht University, Research Centre for Education and the Labour Market (ROA) 010, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  5. Görlitz, Katja & Rzepka, Sylvi, 2014. "Does regional training supply determine employees' training participation?," Discussion Papers 2014/9, Free University Berlin, School of Business & Economics.

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