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Employee Training and Wage Compression in Britain

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Author Info
Filipe Almeida-Santos
Karen Mumford

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Abstract

We use linked data for 1,460 workplaces and 19,853 employees from the Workplace Employee Relations Survey 1998 to analyse the incidence and duration of employee training in Britain. We find training to be positively associated with having a recognised vocational qualification and current union membership. Whilst being non-white, shorter current job tenure, and part-time or fixed-term employment statuses are all associated with less training. Furthermore, in line with recent non-competitive training models, higher levels of wage compression (measured in absolute or relative terms) are positively related to training.

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Paper provided by Department of Economics, University of York in its series Discussion Papers with number 04/11.

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Handle: RePEc:yor:yorken:04/11

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Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
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Related research
Keywords: training; wage compression; performance;

Other versions of this item:

Find related papers by 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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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Stevens, Margaret, 1994. "A Theoretical Model of On-the-Job Training with Imperfect Competition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 537-62, October. [Downloadable!] (restricted)
  2. Booth, Alison L & Zoega, Gylfi, 2001. "Is Wage Compression a Necessary Condition for Firm-Financed General Training?," CEPR Discussion Papers 2845, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9. [Downloadable!] (restricted)
  4. Randall K. Filer, 1986. "The role of personality and tastes in determining occupational structure," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 39(3), pages 412-424, April.
  5. Shields, Michael A & Price, Stephen Wheatley, 1999. "Ethnic Differences in the Incidence and Determinants of Employer-Funded Training in Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(5), pages 523-51, November. [Downloadable!] (restricted)
  6. Steve Dowrick & Karen Mumford, 1990. "Wage Bargaining with Endogenous Profits, Overtime Working and Heterogeneous Labor," Working Papers 657, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  7. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
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  8. Giorgio Brunello, 2002. "Is Training more Frequent when Wage Compression is Higher? Evidence from 11 European Countries," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  9. Ariga, Kenn & Brunello, Giorgio, 2002. "Are the More Educated Receiving More Training? Evidence from Thailand," IZA Discussion Papers 577, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Daron Acemoglu, 2000. "Technical Change, Inequality, and the Labor Market," NBER Working Papers 7800, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory And Evidence," The Quarterly Journal of Economics, MIT Press, vol. 113(1), pages 78-118, February. [Downloadable!] (restricted)
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  12. Mumford, Karen & Smith, Peter N., 2004. "Job Tenure in Britain: Employee Characteristics Versus Workplace Effects," IZA Discussion Papers 1085, Institute for the Study of Labor (IZA). [Downloadable!]
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  13. Jörn-Steffen Pischke, 2001. "Continuous training in Germany," Journal of Population Economics, Springer, vol. 14(3), pages 523-548. [Downloadable!] (restricted)
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  14. Chang, Chun & Wang, Yijiang, 1996. "Human Capital Investment under Asymmetric Information: The Pigovian Conjecture Revisited," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 505-19, July. [Downloadable!] (restricted)
  15. Bassanini, Andrea & Brunello, Giorgio, 2003. "Is Training More Frequent When Wage Compression Is Higher? Evidence from the European Community Household Panel," IZA Discussion Papers 839, Institute for the Study of Labor (IZA). [Downloadable!]
  16. Collier, William & Francis Green & John Peirson & David Wilkinson, 2003. "Training and Establishment Survival," Royal Economic Society Annual Conference 2003 48, Royal Economic Society. [Downloadable!]
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  17. Katz, Eliakim & Ziderman, Adrian, 1990. "Investment in General Training: The Role of Information and Labour Mobility," Economic Journal, Royal Economic Society, vol. 100(403), pages 1147-58, December. [Downloadable!] (restricted)
  18. John W Budd & Karen Mumford, . "Trade Unions and Family-Friendly Policies in Britian," Discussion Papers 01/14, Department of Economics, University of York. [Downloadable!]
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  19. Caballero, Ricardo J & Hammour, Mohamad L, 1994. "The Cleansing Effect of Recessions," American Economic Review, American Economic Association, vol. 84(5), pages 1350-68, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Monojit Chatterji & Karen Mumford & Peter N. Smith, 2007. "The Public-Private Sector Gender Wage Differential: Evidence from Matched Employee-Workplace Data," IZA Discussion Papers 3158, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Ericson, Thomas, 2004. "The effects of wage compression on training: Swedish empirical evidence," Working Paper Series 2004:15, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  3. Monojit Chatterji & Karen Mumford & Peter N Smith, 2007. "The Public-Private Sector Wage Differential: Gender, Workplaces and Family Friendliness," Discussion Papers 202, University of Dundee, Economic Studies. [Downloadable!]
  4. Filipe Almeida-Santos & Karen Mumford, 2006. "Employee Training, Wage Dispersion and Equality in Britain," IZA Discussion Papers 2276, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Sousounis, Panos & Bladen-Hovell, Robin, 2008. "Persistence in work-related training: evidence from the BHPS, 1991-1998," MPRA Paper 9424, University Library of Munich, Germany. [Downloadable!]
  6. Panos, Sousounis, 2009. "The Impact of Work-Related Training on Employee Earnings: Evidence from Great Britain," MPRA Paper 14262, University Library of Munich, Germany. [Downloadable!]
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