Estimating the effect of state dependence in work-related training participation among British employees
AbstractDespite the extensive empirical literature documenting the determinants of training participation and a broad consensus on the influence of previous educational attainment on the training participation decision, there is hardly any reference in the applied literature to the role of past experience of training on future participation. This paper presents evidence on the influence of serial persistence in the work-related training participation decision of British employees. Training participation is modelled as a dynamic random effects probit model and estimated using three different approaches proposed in the literature for tackling the initial conditions problem by Heckman (1981), Wooldrgidge (2005) and Orme (2001). The estimates are then compared with those from a dynamic limited probability model using GMM techniques, namely the estimators proposed by Arellano and Bond (1991) and Blundell and Bond (1998). The results suggest a strong state dependence effect, which is robust across estimation methods, rendering previous experience as an important determining factor in employees’ work-related training decision.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper 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 0920.
Length: 29 pages
Date of creation: Oct 2009
Date of revision:
Contact details of provider:
Postal: Frenchay Campus, Coldharbour Lane, Bristol BS16 1QY
Phone: 0117 328 3610
Web page: http://www1.uwe.ac.uk/bl/research/bristoleconomics.aspx
More information through EDIRC
state dependence; unobserved heterogeneity; training; dynamic panel data models; generalised method of moments;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Felix Ritchie).
If references are entirely missing, you can add them using this form.