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Persistence in the determination of work-related training participation: evidence from the BHPS, 1991-1997

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  • Panos Sousounis

    ()
    (Department of Economics, University of the West of England)

  • Robin Bladen-Hovell

    (Keele University)

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. Training participation is modelled as a dynamic random effects probit model where the effects of unobserved heterogeneity and initial conditions are accounted for in a fashion consistent with methods proposed by Chamberlain (1984) and Wooldridge (2002) respectively. 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.

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File URL: http://carecon.org.uk/DPs/0918.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol in its series Working Papers with number 0918.

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Length: 25 pages
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:uwe:wpaper:0918

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Keywords: Training; state dependence; dynamic probit;

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References

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  1. Filipe Almeida-Santos & Karen Mumford, . "Employee Training and Wage Compression in Britain," Discussion Papers, Department of Economics, University of York 04/11, Department of Economics, University of York.
  2. Cunha, Flavio & Heckman, James J., 2007. "The Technology of Skill Formation," IZA Discussion Papers 2550, Institute for the Study of Labor (IZA).
  3. van Smoorenburg, M. S. M. & van der Velden, R. K. W., 2000. "The training of school-leavers: Complementarity or substitution?," Economics of Education Review, Elsevier, Elsevier, vol. 19(2), pages 207-217, April.
  4. Lorraine Dearden & Howard Reed & John Van Reenen, 2006. "The Impact of Training on Productivity and Wages: Evidence from British Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, Department of Economics, University of Oxford, vol. 68(4), pages 397-421, 08.
  5. Benabou, R., 1999. "Tax and Education Policy in a Heterogeneous Agent Economy: What Levels of Redistribution Maximize Growth and Efficiency?," Working Papers, C.V. Starr Center for Applied Economics, New York University 99-12, C.V. Starr Center for Applied Economics, New York University.
  6. Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, Elsevier, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
  7. Groot, Wim & van den Brink, Henriette Maassen, 2003. "Firm-related training tracks: a random effects ordered probit model," Economics of Education Review, Elsevier, Elsevier, vol. 22(6), pages 581-589, December.
  8. Jeffrey M Wooldridge, 2002. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP18/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  9. 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, Institute for Fiscal Studies, vol. 20(1), pages 1-23, March.
  10. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 4(3), pages S1-39, July.
  11. Roberto G. Gutierrez & Shana Carter & David M. Drukker, 2001. "On boundary-value likelihood-ratio tests," Stata Technical Bulletin, StataCorp LP, StataCorp LP, vol. 10(60).
  12. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, Econometric Society, vol. 46(1), pages 69-85, January.
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Cited by:
  1. M. Picchio & J. C. Van Ours, 2011. "Retaining through Training Even for Older Workers," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium, Ghent University, Faculty of Economics and Business Administration 11/748, Ghent University, Faculty of Economics and Business Administration.
  2. Hector Sala & José Silva, 2013. "Labor productivity and vocational training: evidence from Europe," Journal of Productivity Analysis, Springer, Springer, vol. 40(1), pages 31-41, August.

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