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Employee Training and Wage Dispersion: White and Blue Collar Workers in Britain

Author

Listed:
  • Almeida-Santos, Filipe

    (Universidade Catolica Portuguesa, Lisbon)

  • Chzhen, Yekaterina

    (University of Oxford)

  • Mumford, Karen A.

    (University of York)

Abstract

We use household panel data to explore the wage returns associated with training incidence and intensity (duration) for British employees. We find these returns differ depending on the nature of the training; who funds the training; the skill levels of the recipient (white or blue collar); the age of the employee; and if the training is with the current employer or not. Using decomposition analysis, training is found to be positively associated with wage dispersion: a virtuous circle of wage gains and training exists in Britain but only for white-collar employees.

Suggested Citation

  • 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 of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4821
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    References listed on IDEAS

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    Cited by:

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    2. Carla Haelermans & Lex Borghans, 2012. "Wage Effects of On-the-Job Training: A Meta-Analysis," British Journal of Industrial Relations, London School of Economics, vol. 50(3), pages 502-528, September.
    3. Britta Gauly & Clemens M Lechner, 2019. "Self-perfection or self-selection? Unraveling the relationship between job-related training and adults’ literacy skills," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-23, May.
    4. Siang, Liew & Noor, Zulridah, 2015. "The Impact of Training on the Conditional Wage Distribution in Selected Service Subsectors in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 49(1), pages 37-48.
    5. Choi, Su Jung & Jeong, Jin Chul & Kim, Seoung Nam, 2019. "Impact of vocational education and training on adult skills and employment: An applied multilevel analysis," International Journal of Educational Development, Elsevier, vol. 66(C), pages 129-138.
    6. Ying Ge & Tony Fang & Yeheng Jiang, 2019. "Access to imported intermediates and intra‐firm wage inequality," The World Economy, Wiley Blackwell, vol. 42(8), pages 2364-2384, August.
    7. Dögüs, Ilhan, 2017. "Rising wage dispersion between white-collar and blue-collar workers and market concentration: The case of the USA, 1966-2011," ZÖSS-Discussion Papers 62, University of Hamburg, Centre for Economic and Sociological Studies (CESS/ZÖSS).
    8. Karen Mumford & Monojit Chatterji, 2012. "Flying High and Laying Low in the Public and Private Sectors: A Comparison of Pay Differentials for Male, Full-Time Employees," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(3), pages 235-259.

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    More about this item

    Keywords

    wage compression; performance; training;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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