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Firm-sponsored training in regulated labour markets: evidence from Spain

  • Carlos Peraita
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    Using data from the 1994 European Community Household Panel Survey, the author examines who receives formal firm-sponsored training in Spain. The author finds that the distribution of firm-sponsored training in the work force is uneven and concentrated among more skilled workers in the upper deciles of the wage distribution. The data show that the likelihood of receiving firm-sponsored training for a low education employee is much lower. Also, the better-educated employees in high wage occupations of the largest establishments have higher probabilities of receiving specific training. Spain has a highly regulated labour market, and the labour market frictions and institutions compress and distort the structure of wages. However, the results suggest that the highly compressed wage structure do not provide firms with the incentive to invest in general training.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500194102
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    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 37 (2005)
    Issue (Month): 16 ()
    Pages: 1885-1898

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    Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1885-1898
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    1. Daron Acemoglu & Jorn-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," NBER Working Papers 6740, National Bureau of Economic Research, Inc.
    2. Steven McIntosh, 1999. "A Cross-Country Comparison of the Determinants of Vocational Training," CEP Discussion Papers dp0432, Centre for Economic Performance, LSE.
    3. Daron Acemoglu, 2001. "Directed Technical Change," NBER Working Papers 8287, National Bureau of Economic Research, Inc.
    4. Booth, Alison L & Zoega, Gylfi, 2000. "Why Do Firms Invest in General Training? 'Good' Firms and 'Bad' Firms as a Source of Monopsony Power," CEPR Discussion Papers 2536, C.E.P.R. Discussion Papers.
    5. John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ojt, June.
    6. Nickell, Stephen & Bell, Brian, 1996. "Changes in the Distribution of Wages and Unemployment in OECD Countries," American Economic Review, American Economic Association, vol. 86(2), pages 302-08, May.
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