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Employer-Supported Training in Canada and Its Impact on Mobility and Wages

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  • Daniel Parent

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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) wWhat 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 ²favorable'' 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)'s 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. Cet article cherche à exploiter l'information sur la formation et les profils d'emploi contenue dans «Le suivi de l'enquête sur les sortants» de Statistique Canada afin de répondre aux trois questions suivantes: 1) quelles sont les caractéristiques des employés formés?; 2) les salaires de ces employés s'en trouvent-ils augmentés?; et 3) est-ce que la formation accentue la persistance de la relation d'emploi?. Je trouve que les travailleurs plus scolarisés sont plus susceptibles d'être formés que les décrocheurs à l'école secondaire, bien qu'il semble clair que les employeurs sélectionnent davantage ceux qui ont des attributs plus favorables. De plus, la formation contribue de façon significative à la croissance salariale des hommes, mais relativement peu à celle des femmes. Finalement, en utilisant un modèle de durée à effets fixes proposé par Chamberlain (1985), je montre que la probabilité conditionnelle que la relation d'emploi se termine est sensiblement réduite pour ceux qui ont été formés, ce qui est cohérent avec l'idée qu'une part des habiletés acquise par le biais de la formation est de nature spécifique à la firme.

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Bibliographic Info

Paper provided by CIRANO in its series CIRANO Working Papers with number 2002s-27.

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Date of creation: 01 Apr 2002
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Handle: RePEc:cir:cirwor:2002s-27

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Keywords: training; panel data; formation; données longitudinales;

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References

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  1. Daniel Parent, 1995. "Wages and Mobility: The Impact of Employer-Provided Training," CIRANO Working Papers 95s-27, CIRANO.
  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. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
  4. Daron Acemoglu & Jorn-Steffen Pischke, 1996. "Why Do Firms Train? Theory and Evidence," NBER Working Papers 5605, National Bureau of Economic Research, Inc.
  5. Acemoglu, Daron & Pischke, Jörn-Steffen, 1998. "The Structure of Wages and Investment in General Training," CEPR Discussion Papers 1833, C.E.P.R. Discussion Papers.
  6. MacLeod, W. Bentley & Malcomson, James M., 1993. "Wage premiums and profit maximization in efficiency wage models," European Economic Review, Elsevier, vol. 37(6), pages 1223-1249, August.
  7. 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.
  8. 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.
  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, octubre-d.
  10. 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.
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Cited by:
  1. Campolieti, Michele & Fang, Tony & Gunderson, Morley, 2009. "Labour Market Outcomes and Skills Acquisition of High-School Dropouts," CLSSRN working papers clsrn_admin-2009-25, Vancouver School of Economics, revised 15 Mar 2009.
  2. Muehler, Grit & Beckmann, Michael & Schauenberg, Bernd, 2007. "The Returns to Continuous Training in Germany: New Evidence from Propensity Score Matching Estimators," ZEW Discussion Papers 07-048, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Grip Andries de & Sauermann Jan, 2011. "The Effects of Training on Own and Co-Worker Productivity: Evidence from a Field Experiment," Research Memorandum 044, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  4. Yanick Labrie & Claude Montmarquette, 2005. "La formation qualifiante et transférable en milieu de travail," CIRANO Project Reports 2005rp-04, CIRANO.
  5. Anna Ruzik-Sierdzinska & Claudia Villosio & Michele Belloni & Maciej Lis & Monika Potoczna, 2013. "Age and productivity. Human Capital Accumulation and Depreciation," CASE Network Reports 0114, CASE-Center for Social and Economic Research.

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