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Training, wages and employment security

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Author Info

  • Andrea Bassanini

    ()
    (CEPN - Centre d'économie de l'Université de Paris Nord - CNRS : UMR7115 - Université Paris-Nord - Paris XIII)

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.

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Bibliographic Info

Paper provided by HAL in its series Post-Print with number halshs-00120488.

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Date of creation: 2006
Date of revision:
Publication status: Published, Applied Economics Letters, 2006, 13, 8, 523-527
Handle: RePEc:hal:journl:halshs-00120488

Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00120488/en/
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Related research

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

References

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  1. Green, Francis & Felstead, Alan & Burchell, Brendan, 2000. " Job Insecurity and the Difficulty of Regaining Employment: An Empirical Study of Unemployment Expectations," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(0), pages 855-83, Special I.
  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, D., 1995. "Wages and Mobility: the Impact of Employer-Provided Training," Cahiers de recherche 9507, Universite de Montreal, Departement de sciences economiques.
  4. James J. Heckman, 2000. "Policies to Foster Human Capital," JCPR Working Papers 154, Northwestern University/University of Chicago Joint Center for Poverty Research.
  5. 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.
  6. John S. Heywood & W. S. Siebert & Xiangdong Wei, 2002. "Worker sorting and job satisfaction: The case of union and government jobs," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(4), pages 595-609, July.
  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.
  9. 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.
  10. Manishi Prasad & Peter Wahlqvist & Rich Shikiar & Ya-Chen Tina Shih, 2004. "A," PharmacoEconomics, Springer Healthcare | Adis, vol. 22(4), pages 225-244.
  11. Blundell, Richard, 2000. "Comments on James Heckman's "Policies to foster human capital"," Research in Economics, Elsevier, vol. 54(1), pages 57-60, March.
  12. Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 142-71, January.
  13. Booth, Alison L. & Bryan, Mark L., 2002. "Who Pays for General Training? New Evidence for British Men and Women," IZA Discussion Papers 486, Institute for the Study of Labor (IZA).
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Cited by:
  1. 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.
  2. 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).

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