On the Job Training, Mobility and Employment Dynamics: Empirical Investigations with Individual and Establishment Data
The paper analyses the following questions: Does on the job training tie employees to the firm or increase the propensity to change the job? Can significant differences be observed between skill or labor force groups? Are external effects induced by on the job training, namely, does the propensity to leave the firm change for non-trained employees? These topics are investigated based on generalized additive models, which make use of nonparametric methods to determine unspecified nonlinear effects. The investigation is carried out using German data on individuals (GSOEP) and establishments (The Hannover Panel). The major results are: On the job training usually reduces the probability to quit the job. Especially in the short run, the propensity to stay in a firm after additional training is increased for high skilled workers. Firm-paid training increases this propensity to a higher degree than worker-financed courses. Unskilled workers can improve their working conditions only by training for which they pay on their own and only if they change the employer after the course. Furthermore, employers often use training to start or to accelerate replacement processes. Crowding Out of unskilled by skilled workers is the consequence. The higher the firm's expenditures for training the higher is the propensity to fill vacancies by external recruitment.
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Volume (Year): 219 (1999)
Issue (Month): 1+2 (July)
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