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Employer-supported training in Canada and its impact on mobility and wages

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  • Daniel Parent

Abstract

Using information on job histories and on two training questions contained in Statistics Canada's Follow-Up to the School Leavers Survey, this paper seeks to answer three basic questions: 1) what are the characteristics of the trainees?; 2) Does the receipt of employer-supported training cause an increase in the wage paid to those young workers?; and 3) Does it improve the degree of job attachment?; I find that more educated young people are somewhat more likely to be trained than high school dropouts although there is strong evidence of selectivity as employers clearly seem to support training for those that have the most “favorable” characteristics. Also, controlling for unobserved individual characteristics, I find that training has a sizeable wage impact for men while the effect is much more modest for women. Finally, results using Chamberlain (1985) fixed-effects hazard model show that the conditional probability of the employment relationship being terminated decreases substantially for trainees, which is consistent with the notion that the skills learned by trainees may have a sizeable firm-specific component. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • Daniel Parent, 2003. "Employer-supported training in Canada and its impact on mobility and wages," Empirical Economics, Springer, vol. 28(3), pages 431-459, July.
    • Handle: RePEc:spr:empeco:v:28:y:2003:i:3:p:431-459
    DOI: 10.1007/s001810200140
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    Cited by:

    1. Andrey Aistov & Ekaterina Aleksandrova, 2016. "Time-distributed difference-in-differences approach: The case of wage returns to training," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 43, pages 5-28.
    2. Andrey Aistov & Ekaterina Aleksandrova, 2015. "Individual Returns to Training in a Russian Firm," HSE Working papers WP BRP 101/EC/2015, National Research University Higher School of Economics.
    3. Yanick Labrie & Claude Montmarquette, 2005. "La formation qualifiante et transférable en milieu de travail," CIRANO Project Reports 2005rp-04, CIRANO.
    4. Andries De Grip & Jan Sauermann, 2012. "The Effects of Training on Own and Co‐worker Productivity: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, vol. 122(560), pages 376-399, May.
    5. Anna Ruzik-Sierdzinska & Claudia Villosio & Michele Belloni & Maciej Lis & Monika Potoczna, 2013. "Age and productivity. Human Capital Accumulation and Depreciation," CASE Network Reports 0114, CASE-Center for Social and Economic Research.
    6. Wen Ci & Jose Galdo & Marcel Voia & Christopher Worswick, 2015. "Wage returns to mid-career investments in job training through employer supported course enrollment: evidence for Canada," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-25, December.
    7. Carrasco, Raquel & Alvarez, Gema, 2013. "Measuring the impact of on the job training on job mobility," MPRA Paper 103353, University Library of Munich, Germany, revised 2015.
    8. Andrey Aistov & Ekaterina Aleksandrova, 2014. "Individual returns to training: Evidence from Russian firm," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 34(2), pages 56-79.
    9. Daniel Dietz & Thomas Zwick, 2016. "The retention effect of training – portability, visibility, and credibility," Economics of Education Working Paper Series 0113, University of Zurich, Department of Business Administration (IBW).
    10. Shengjun Jiang, 2024. "Reasons for college major-job mismatch and subsequent job mobility and earnings growth," Empirical Economics, Springer, vol. 67(3), pages 1275-1301, September.
    11. Henrik Hansen & S. Kanay De & John Rand & Neda Trifković, 2023. "Wage returns to workplace training in Myanmar," Development Policy Review, Overseas Development Institute, vol. 41(2), March.
    12. Henrik Hansen & S Kanayade & John Rand & Neda Trifkovic, 2021. "Workplace training in Myanmar: Determinants and wage returns," DERG working paper series 21-10, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    13. Siang, Liew & Noor, Zulridah, 2015. "The Impact of Training on the Conditional Wage Distribution in Selected Service Subsectors in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 49(1), pages 37-48.
    14. Andrey Aistov, 2017. "Time distributed difference-in-differences estimates of return to training," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1300978-130, January.
    15. Michele Campolieti & Tony Fang & Morley Gunderson, 2010. "Labour Market Outcomes and Skill Acquisition of High-School Dropouts," Journal of Labor Research, Springer, vol. 31(1), pages 39-52, March.
    16. Wen Ci & Michelle Laing & Marcel Voia & Christopher Worswick, 2020. "Immigrant earnings returns to post‐migration education: Evidence for Canada, 1999–2013," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1599-1617, November.
    17. Grit Muehler & Michael Beckmann & Bernd Schauenberg, 2007. "The returns to continuous training in Germany: new evidence from propensity score matching estimators," Review of Managerial Science, Springer, vol. 1(3), pages 209-235, November.

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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