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Training, wages and employment security

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  • Andrea Bassanini

    (CEPN - Centre d'Economie de l'Université Paris Nord (ancienne affiliation) - UP13 - Université Paris 13 - CNRS - Centre National de la Recherche Scientifique)

Abstract

Data from the European Community Household Panel (ECHP) are used to assess the effects of employee training on the average wage and employment security of different labour market groups in EU countries. Significant training wage premia are found only in the case of young or highly educated employees. By contrast training appears to have a strong impact on employment security, measured through subjective measures, in the case of both older and low-educated workers. To reconcile this apparent contradiction, one needs to take into account that, as standard in the literature, wage premia are estimated on a truncated sample including only employed workers. Due to downward wage rigidity, those workers who are unable to maintain their productivity are more frequently laid-off - rather than experiencing a wage fall and be retained in employment - and thereby excluded from the sample.

Suggested Citation

  • Andrea Bassanini, 2006. "Training, wages and employment security," Post-Print halshs-00120488, HAL.
    • Handle: RePEc:hal:journl:halshs-00120488
    DOI: 10.1080/13504850500400447
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00120488
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    References listed on IDEAS

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    Cited by:

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    2. Martín-Román, Ángel L., 2022. "Beyond the added-worker and the discouraged-worker effects: the entitled-worker effect," Economic Modelling, Elsevier, vol. 110(C).
    3. Yvonne Jie Chen & Namrata Chindarkar, 2017. "The Value of Skills – Raising the Socioeconomic Status of Rural Women in India," Development Policy Review, Overseas Development Institute, vol. 35(2), pages 229-261, January.
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    5. Luc Behaghel & Eve Caroli & Muriel Roger, 2014. "Age-biased Technical and Organizational Change, Training and Employment Prospects of Older Workers," Economica, London School of Economics and Political Science, vol. 81(322), pages 368-389, April.
    6. Ignacio Moral-Arce & Javier Martín-Román & Ángel L. Martín-Román, 2019. "Cessation of Activity Benefit for Spanish Self-employed Workers: A Heterogeneous Impact Evaluation," Hacienda Pública Española / Review of Public Economics, IEF, vol. 231(4), pages 41-79, December.
    7. Julia Lang, 2012. "The Aims of Lifelong Learning: Age-Related Effects of Training on Wages and Job Security," SOEPpapers on Multidisciplinary Panel Data Research 478, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Kamphuis, Pascal & Glebbeek, Arie C., 2020. "Job (in)security and workers' training decisions: A framing approach," International Journal for Research in Vocational Education and Training (IJRVET), European Research Network in Vocational Education and Training (VETNET), European Educational Research Association, vol. 7(3), pages 361-387.
    9. Huasheng Zhu & Junwei Feng & Maojun Wang & Fan Xu, 2017. "Sustaining Regional Advantages in Manufacturing: Skill Accumulation of Rural–Urban Migrant Workers in the Coastal Area of China," Sustainability, MDPI, vol. 9(1), pages 1-23, January.
    10. Nicola Brandt, 2015. "Vocational training and adult learning for better skills in France," OECD Economics Department Working Papers 1260, OECD Publishing.
    11. repec:dau:papers:123456789/7243 is not listed on IDEAS
    12. Lang, Julia, 2012. "The aims of lifelong learning: Age-related effects of training on wages and job security," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62073, Verein für Socialpolitik / German Economic Association.
    13. Giorgio Brunello, 2006. "Workplace Training and Labour Market Institutions in Europe," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(04), pages 33-41, February.
    14. Florence Lebert & Erika Antal, 2016. "Reducing Employment Insecurity," SAGE Open, , vol. 6(4), pages 21582440166, October.
    15. Tito Boeri & Jan van Ours, 2013. "The Economics of Imperfect Labor Markets: Second Edition," Economics Books, Princeton University Press, edition 1, number 10142.

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