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Training, Wages and Employment Security: An Empirical Analysis on European Data

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  • Andrea Bassanini

    ()
    (OECD and EPEE)

Abstract

We use data from the European Community Household Panel (ECHP) to assess the effects of employee training on the individual labour market performance of different labour market groups in EU countries. We find significant training rage premia only in the case of young or highly educated employees. By contrast training appears to have a strong impact on employment security in the case of both older and low-educated workers. To reconcile this apparent contradiction, we need to take into account that, as standard in the literature, wage premia are estimated on a troncated sample including only employed workers. Due to downward wage rigidity, those workers who are unable to maintain their prociuctivity are more frequently laid—off rather than experiencing a wage fall and be retained in employment and thereby excluded from our sample.

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File URL: http://epee.univ-evry.fr/RePEc/2005/05-04.pdf
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Bibliographic Info

Paper provided by Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne in its series Documents de recherche with number 05-04.

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Length: 18 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:eve:wpaper:05-04

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Related research

Keywords: training wage premia; job security; wage compression; ECHP;

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References

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  1. Andrew Clark & Fabien Postel-Vinay, 2005. "Job Security and Job Protection," CEP Discussion Papers dp0678, Centre for Economic Performance, LSE.
  2. Michael Gerfin, 2003. "Firm-sponsored Work-Related Training in Frictional Labour Markets: An empirical analysis for Switzerland," Diskussionsschriften dp0317, Universitaet Bern, Departement Volkswirtschaft.
  3. Parent, Daniel, 1999. "Wages and Mobility: The Impact of Employer-Provided Training," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 298-317, April.
  4. Paul Sicilian & Adam Grossberg, 2001. "Investment in human capital and gender wage differences: evidence from the NLSY," Applied Economics, Taylor & Francis Journals, vol. 33(4), pages 463-471.
  5. 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.
  6. Denis Fougère & Dominique Goux & Eric Maurin, 1998. "Formation continue et carrières salariales. Une évaluation sur données individuelles," Working Papers 98-43, Centre de Recherche en Economie et Statistique.
  7. Agell, Jonas & Lommerud, Kjell Erik, 1997. "Minimum wages and the incentives for skill formation," Journal of Public Economics, Elsevier, vol. 64(1), pages 25-40, April.
  8. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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Cited by:
  1. Roger, Muriel & Caroli, Eve & Behaghel, Luc, 2014. "Age Biased Technical and Organisational Change, Training and Employment Prospects of Older Workers," Economics Papers from University Paris Dauphine 123456789/7243, Paris Dauphine University.
  2. Lang, Julia, 2012. "The aims of lifelong learning: Age-related effects of training on wages and job security," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62073, Verein für Socialpolitik / German Economic Association.
  3. Dostie, Benoit & Léger, Pierre Thomas, 2011. "Firm-Sponsored Classroom Training: Is It Worth It for Older Workers?," IZA Discussion Papers 6123, Institute for the Study of Labor (IZA).

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