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The Incidence and Intensity of Employer Funded Training: Australian Evidence on the Impact of Flexible Work

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  • Mirko Draca
  • Colin Green

Abstract

The interaction between the growth of flexible forms of employment and employer funded training is important for understanding labour market performance. In particular, the idea of a trade-off has been advanced to describe potential market failures in the employment of flexible workers. This study finds that evidence of a trade-off is apparent in both the incidence and intensity of employer funded training. Flexible workers receive training that is 50-80% less intense than the workforce average. Casual workers - especially males - suffer more acutely from the trade-off. This suggests that flexible production externalities may seriously reduce human capital formation in the workforce. Copyright (c) Scottish Economic Society 2004.

Suggested Citation

  • Mirko Draca & Colin Green, 2004. "The Incidence and Intensity of Employer Funded Training: Australian Evidence on the Impact of Flexible Work," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(5), pages 609-625, November.
  • Handle: RePEc:bla:scotjp:v:51:y:2004:i:5:p:609-625
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    Citations

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    Cited by:

    1. Marloes de Graaf-Zijl, 2005. "The Attractiveness of Temporary Employment to Reduce Adjustment Costs," Tinbergen Institute Discussion Papers 05-121/3, Tinbergen Institute.
    2. repec:lan:wpaper:3170 is not listed on IDEAS
    3. repec:lan:wpaper:3015 is not listed on IDEAS
    4. Didier Fouarge & Andries Grip & Wendy Smits & Robert Vries, 2012. "Flexible Contracts and Human Capital Investments," De Economist, Springer, vol. 160(2), pages 177-195, June.
    5. Inga Lass & Mark Wooden, 2017. "The Structure of the Wage Gap for Temporary Workers: Evidence from Australian Panel Data," Melbourne Institute Working Paper Series wp2017n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. Duncan McVicar & Mark Wooden & Felix Leung & Ning Li, 2016. "Work-Related Training and the Probability of Transitioning from Non-Permanent to Permanent Employment," British Journal of Industrial Relations, London School of Economics, vol. 54(3), pages 623-646, September.
    7. repec:lan:wpaper:2921 is not listed on IDEAS
    8. Colin Green & Parvinder Kler & Gareth Leeves, 2010. "Flexible Contract Workers in Inferior Jobs: Reappraising the Evidence," British Journal of Industrial Relations, London School of Economics, vol. 48(3), pages 605-629, September.
    9. Benoit Dostie & Pierre Thomas Léger, 2008. "Une analyse des déterminants de l'incidence et de l'intensité de la formation des travailleurs québécois selon l'âge et comparaison avec l'Ontario," CIRANO Working Papers 2008s-23, CIRANO.
    10. Inmaculada Garcia & Colin Green & Maria Navarro Paniagua, 2012. "New Estimates of the Effect of Temporary Employment on Absenteeism," Working Papers 24151321, Lancaster University Management School, Economics Department.

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