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Employer-Supported Training in Canada and Its Impact on Mobility and Wages


  • Daniel Parent


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) wWhat 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 ²favorable'' 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)'s 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. Cet article cherche à exploiter l'information sur la formation et les profils d'emploi contenue dans «Le suivi de l'enquête sur les sortants» de Statistique Canada afin de répondre aux trois questions suivantes: 1) quelles sont les caractéristiques des employés formés?; 2) les salaires de ces employés s'en trouvent-ils augmentés?; et 3) est-ce que la formation accentue la persistance de la relation d'emploi?. Je trouve que les travailleurs plus scolarisés sont plus susceptibles d'être formés que les décrocheurs à l'école secondaire, bien qu'il semble clair que les employeurs sélectionnent davantage ceux qui ont des attributs plus favorables. De plus, la formation contribue de façon significative à la croissance salariale des hommes, mais relativement peu à celle des femmes. Finalement, en utilisant un modèle de durée à effets fixes proposé par Chamberlain (1985), je montre que la probabilité conditionnelle que la relation d'emploi se termine est sensiblement réduite pour ceux qui ont été formés, ce qui est cohérent avec l'idée qu'une part des habiletés acquise par le biais de la formation est de nature spécifique à la firme.

Suggested Citation

  • Daniel Parent, 2002. "Employer-Supported Training in Canada and Its Impact on Mobility and Wages," CIRANO Working Papers 2002s-27, CIRANO.
  • Handle: RePEc:cir:cirwor:2002s-27

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    References listed on IDEAS

    1. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June.
    2. Lynch, Lisa M, 1992. "Private-Sector Training and the Earnings of Young Workers," American Economic Review, American Economic Association, vol. 82(1), pages 299-312, March.
    3. repec:eme:rlepps:v:18:y:1999:i:1999:p:403-438 is not listed on IDEAS
    4. David G. Blanchflower & Lisa M. Lynch, 1994. "Training at Work: A Comparison of U.S. and British Youths," NBER Chapters,in: Training and the Private Sector: International Comparisons, pages 233-260 National Bureau of Economic Research, Inc.
    5. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-482, June.
    6. MacLeod, W. Bentley & Malcomson, James M., 1993. "Wage premiums and profit maximization in efficiency wage models," European Economic Review, Elsevier, vol. 37(6), pages 1223-1249, August.
    7. Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 225-238.
    8. Parent, Daniel, 1999. "Wages and Mobility: The Impact of Employer-Provided Training," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 298-317, April.
    9. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, January.
    10. Lynch, Lisa M, 1991. "The Role of Off-the-Job vs. On-the-Job Training for the Mobility of Women Workers," American Economic Review, American Economic Association, vol. 81(2), pages 151-156, May.
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    Cited by:

    1. Aistov, Andrey & Aleksandrova, Ekaterina, 2014. "Individual returns to training: Evidence from Russian firm," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 34(2), pages 56-79.
    2. 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).
    3. 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.
    4. Aistov, Andrey & Aleksandrova, Ekaterina, 2016. "Time-distributed difference-in-differences approach: The case of wage returns to training," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 43, pages 5-28.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Yanick Labrie & Claude Montmarquette, 2005. "La formation qualifiante et transférable en milieu de travail," CIRANO Project Reports 2005rp-04, CIRANO.

    More about this item


    training; panel data; formation; données longitudinales;

    JEL classification:

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

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