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Explaining Cross-Country Differences in Job-Related Training: Macroeconomic Evidence from OECD Countries

Author

Listed:
  • Serge Coulombe
  • Jean-Francois Tremblay

Abstract

This paper presents an empirical analysis on the macroeconomic determinants of aggregate job-related training activity across fourteen OECD countries. Training data comes from the International Adult Literacy Survey. We find that compression at the bottom of the wage distribution has a positive effect on aggregate training across countries and age-groups while compression at the top has the opposite effect. Consistent with microeconomic evidence on education and training, average literacy skills in each country and age-group have a positive effect on the proportion of workers trained. The analysis controls for unemployment rates, R&D levels, unionization rates, and industrial structures.

Suggested Citation

  • Serge Coulombe & Jean-Francois Tremblay, 2007. "Explaining Cross-Country Differences in Job-Related Training: Macroeconomic Evidence from OECD Countries," Economie Internationale, CEPII research center, issue 110, pages 5-29.
  • Handle: RePEc:cii:cepiei:2007-2ta
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    File URL: http://www.economieinternationale.fr/IE/rev110/rev110a.htm
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    Cited by:

    1. Bert Minne & Marc van der Steeg & Dinand Webbink, 2008. "Skill gaps in the EU: role for education and training policies," CPB Document 162, CPB Netherlands Bureau for Economic Policy Analysis.

    More about this item

    Keywords

    Job-related training; wage compression; macroeconomic evidence; labor market; professional training;

    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

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