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Persistence in work-related training: evidence from the BHPS, 1991-1998

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Author Info
Sousounis, Panos
Bladen-Hovell, Robin

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Abstract

In this paper we investigate the role of workers’ training history in determining current training incidence. The analysis is conducted on an unbalanced sample comprising information on approximately 5000 employees from the first seven waves of the BHPS. Our methodology utilizes a two-step dynamic probit model developed by Orme (2001) which allows for unobserved heterogeneity and formal modelling of initial conditions. The results suggest that prior training experience is a significant determinant of a worker’s participation in a current training episode comparable with other formal educational qualifications. State dependence in the model accounts for 53% of the probability of training the current period, conditional on having experienced some form of work-related training in the previous period. For women, however, the corresponding figure is lower at approximately 38% suggesting substantially greater state dependence among male workers.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9424.

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Date of creation: Mar 2008
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Handle: RePEc:pra:mprapa:9424

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Related research
Keywords: Training State dependence Dynamic probit

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Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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  1. Richard Blundell & Lorraine Dearden & Costas Meghir & Barbara Sianesi, 1999. "Human capital investment: the returns from education and training to the individual, the firm and the economy," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 1-23, March. [Downloadable!]
  2. Almeida-Santos, Filipe & Mumford, Karen, 2004. "Employee Training and Wage Compression in Britain," IZA Discussion Papers 1197, Institute for the Study of Labor (IZA). [Downloadable!]
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  3. Francis Green & Stephen Machin & David Wilkinson, 1999. "Trade unions and training practices in British workplaces," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 52(2), pages 179-195, January.
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  4. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
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  5. Dearden, Lorraine & Reed, Howard & Van Reenen, John, 2000. "Who Gains when Workers Train? Training and Corporate Productivity in a Panel of British Industries," CEPR Discussion Papers 2486, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Booth, Alison L, 1991. "Job-Related Formal Training: Who Receives It and What Is It Worth?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(3), pages 281-94, August.
  7. Alfonso Miranda, 2007. "Dynamic probit models for panel data: A comparison of three methods of estimation," United Kingdom Stata Users' Group Meetings 2007 11, Stata Users Group. [Downloadable!]
  8. Arulampalam, W., 1998. "A Note on Estimated Coefficients in Random Effects Probit Models," The Warwick Economics Research Paper Series (TWERPS) 520, University of Warwick, Department of Economics. [Downloadable!]
  9. 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). [Downloadable!]
  10. Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
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