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Dual Labour Markets and (Lack of) On-the-Job Training: PIAAC Evidence from Spain and Other EU Countries

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Listed:
  • Cabrales, Antonio

    (University College London)

  • Dolado, Juan J.

    (Universidad Carlos III de Madrid)

  • Mora, Ricardo

    (Universidad Carlos III de Madrid)

Abstract

Using the Spanish micro data from the Programme for the International Assessment of Adult Competencies (PIAAC), we first document how the excessive gap in employment protection between indefinite and temporary workers leads to large differentials in on-the-job training (OTJ) against the latter. Next, we find that that the lower specific training received by temporary workers is correlated with lower literacy and numeracy scores achieved in the PIAAC study. Finally, we provide further PIAAC cross-country evidence showing that OJT gaps are quite lower in those European labour markets where dualism is less entrenched than in those where it is more extended.

Suggested Citation

  • Cabrales, Antonio & Dolado, Juan J. & Mora, Ricardo, 2014. "Dual Labour Markets and (Lack of) On-the-Job Training: PIAAC Evidence from Spain and Other EU Countries," IZA Discussion Papers 8649, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8649
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    2. De La Rica, Sara & Gortazar, Lucas, 2017. "Digitalization at work, Job Tasks and Wages: Cross-Country evidence from PIAAC1," GLO Discussion Paper Series 22, Global Labor Organization (GLO).
    3. Juan J. Dolado & Etienne Lalé & Nawid Siassi, 2021. "From dual to unified employment protection: Transition and steady state," Quantitative Economics, Econometric Society, vol. 12(2), pages 547-585, May.
    4. Siassi, Nawid & Dolado, Juan J. & Lalé, Etienne, 2015. "Moving Towards a Single Labor Contract: Transition vs. Steady State," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112858, Verein für Socialpolitik / German Economic Association.
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    7. Maurizio, Roxana., 2016. "Non-standard forms of employment in Latin America : prevalence, characteristics and impacts on wages," ILO Working Papers 994906973402676, International Labour Organization.
    8. Clémence Berson, 2018. "Fixed-Term Contracts and Labor Market Duality in France," De Economist, Springer, vol. 166(4), pages 455-476, December.
    9. Yosuke Jin & Aida Caldera Sánchez & Pilar Garcia Perea, 2017. "Reforms for more and better quality jobs in Spain," OECD Economics Department Working Papers 1386, OECD Publishing.
    10. Corseuil, Carlos Henrique & Foguel, Miguel N. & Gonzaga, Gustavo, 2019. "Apprenticeship as a stepping stone to better jobs: Evidence from Brazilian matched employer-employee data," Labour Economics, Elsevier, vol. 57(C), pages 177-194.
    11. Brunello, Giorgio & Wruuck, Patricia, 2020. "Employer provided training in Europe: Determinants and obstacles," EIB Working Papers 2020/03, European Investment Bank (EIB).
    12. Dolores Añón Higón & Juan A. Máñez & María E. Rochina-Barrachina & Amparo Sanchis & Juan A. Sanchis, 2022. "Firms’ distance to the European productivity frontier," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(2), pages 197-228, June.
    13. Sara De La Rica & Lucas Gortazar, 2015. "Differences in Job De-Routinization in OECD countries: Evidence from PIAAC," Working Papers 2015-11, FEDEA.
    14. Brindusa Anghel & Pau Balart, 2017. "Non-cognitive skills and individual earnings: new evidence from PIAAC," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 8(4), pages 417-473, November.
    15. Nicodemo, Catia & Satorra, Albert, 2020. "Exploratory Data Analysis on Large Data Sets: The Example of Salary Variation in Spanish Social Security Data," IZA Discussion Papers 13459, Institute of Labor Economics (IZA).
    16. Johanna Schauer, 2018. "Labor Market Duality in Korea," IMF Working Papers 2018/126, International Monetary Fund.
    17. Francesca Sgobbi, 2016. "Train the worst or train the best? The determinants of employer-sponsored training in five European countries," Working Papers 29, Birkbeck Centre for Innovation Management Research, revised Jan 2016.
    18. J. Ignacio García Pérez, 2015. "Should severance pay be consistent for all workers?," IZA World of Labor, Institute of Labor Economics (IZA), pages 174-174, August.
    19. Giulio Pedrini, 2020. "Off‐the‐job training and the shifting role of part‐time and temporary employment across institutional models. Comparing Italian and British firms," Industrial Relations Journal, Wiley Blackwell, vol. 51(5), pages 427-453, September.
    20. Denise Currie & Paul Teague, 2017. "The eurozone crisis, German hegemony and labour market reform in the GIPS countries," Industrial Relations Journal, Wiley Blackwell, vol. 48(2), pages 154-173, March.
    21. Luca Cattani & Giovanni Guidetti & Giulio Pedrini, 2021. "Work Flexibility and Workplace Training in Italy Before and After the Jobs Act Reform," Review of Economics and Institutions, Università di Perugia, vol. 12(1).
    22. G. Guidetti & G. Pedrini, 2015. "Systemic flexibility and human capital development: the relationship between non-standard employment and workplace training," Working Papers wp1019, Dipartimento Scienze Economiche, Universita' di Bologna.

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    More about this item

    Keywords

    dual labour market; on-the-job training; cognitive skills; severance pay;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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