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Employee Training and Wage Compression in Britain

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  • Almeida-Santos, Filipe

    ()
    (Universidade Catolica Portuguesa, Lisbon)

  • Mumford, Karen A.

    ()
    (University of York)

Abstract

We use linked data for 1,460 workplaces and 19,853 employees from the Workplace Employee Relations Survey 1998 to analyse the incidence and duration of employee training in Britain. We find training to be positively associated with having a recognised vocational qualification and current union membership. Whilst being non-white, shorter current job tenure, and part-time or fixed-term employment statuses are all associated with less training. Furthermore, in line with recent non-competitive training models, higher levels of wage compression (measured in absolute or relative terms) are positively related to training.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1197.

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Length: 29 pages
Date of creation: Jun 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1197

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Keywords: wage compression; performance; training;

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References

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  1. Jörn-Steffen Pischke, 2001. "Continuous training in Germany," Journal of Population Economics, Springer, vol. 14(3), pages 523-548.
  2. Karen Mumford & Peter N Smith, . "Job Tenure in Britain: Employee Characteristics Versus Workplace Effects," Discussion Papers 04/06, Department of Economics, University of York.
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  9. Harley Frazis & Maury Gittleman & Mary Joyce, 2000. "Correlates of training: An analysis using both employer and employee characteristics," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(3), pages 443-462, April.
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  12. Giorgio Brunello, 2002. "Is Training more Frequent when Wage Compression is Higher? Evidence from 11 European Countries," CESifo Working Paper Series 637, CESifo Group Munich.
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Citations

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Cited by:
  1. Fouarge Didier & Grip Andries de & Smits Wendy & Vries Robert de, 2011. "Flexible contracts and human capital investments," ROA Research Memorandum 013, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  2. Ericson, Thomas, 2004. "The effects of wage compression on training: Swedish empirical evidence," Working Paper Series 2004:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. Pfeifer, Christian, 2013. "Intra-firm Wage Compression and Cost Coverage of Training: Evidence from Linked Employer-Employee Data," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80030, Verein für Socialpolitik / German Economic Association.
  4. repec:dgr:uvatin:2005121 is not listed on IDEAS
  5. Giorgio Brunello & Maria De Paola, 2004. "Market Failures and the Under-Provision of Training," CESifo Working Paper Series 1286, CESifo Group Munich.
  6. Panos Sousounis, 2009. "The Impact of Work-Related Training on Employee Earnings: Evidence from Great Britain," Working Papers 0919, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  7. Sousounis, Panos & Bladen-Hovell, Robin, 2008. "Persistence in work-related training: evidence from the BHPS, 1991-1998," MPRA Paper 9424, University Library of Munich, Germany.
  8. Christos Bilanakos, 2011. "Optimal Contracts and Investment in General Human Capital under Common Agency," University of Cyprus Working Papers in Economics 08-2011, University of Cyprus Department of Economics.
  9. Monojit Chatterji & Karen Mumford & Peter N Smith, 2007. "The Public-Private Sector Wage Differential: Gender, Workplaces and Family Friendliness," Dundee Discussion Papers in Economics 202, Economic Studies, University of Dundee.
  10. Sousounis, Panos & Bladen-Hovell, Robin, 2010. "Persistence in the determination of work-related training participation: Evidence from the BHPS, 1991-1997," Economics of Education Review, Elsevier, vol. 29(6), pages 1005-1015, December.
  11. Panos, Sousounis, 2009. "The Impact of Work-Related Training on Employee Earnings: Evidence from Great Britain," MPRA Paper 14262, University Library of Munich, Germany.
  12. Almeida-Santos, Filipe & Mumford, Karen A., 2006. "Employee Training, Wage Dispersion and Equality in Britain," IZA Discussion Papers 2276, Institute for the Study of Labor (IZA).
  13. Stenberg, Anders, 2006. "Skill needs and continuing vocational training in Sweden," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-109, Social Science Research Center Berlin (WZB).
  14. Ardiana N. Gashi & Geoff Pugh & Nick Adnett, 2010. "Technological change and employer-provided training: evidence from UK workplaces," International Journal of Manpower, Emerald Group Publishing, vol. 31(4), pages 426-448, July.
  15. Chatterji, Monojit & Mumford, Karen A. & Smith, Peter N., 2007. "The Public-Private Sector Gender Wage Differential: Evidence from Matched Employee-Workplace Data," IZA Discussion Papers 3158, Institute for the Study of Labor (IZA).
  16. Almeida-Santos, Filipe & Chzhen, Yekaterina & Mumford, Karen A., 2010. "Employee Training and Wage Dispersion: White and Blue Collar Workers in Britain," IZA Discussion Papers 4821, Institute for the Study of Labor (IZA).

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