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Organisational Accreditation and Worker Upskilling in Britain

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  • Haile, Getinet Astatike

    () (University of Nottingham)

Abstract

Britain has lagged behind the G7 countries in labour productivity in recent years. There is also an emerging concern about a potential post-Brexit skills deficit. Upskilling the existing workforce via on-the-job training may be a vital policy tool available. Using a panel of organisations and their 'Investors in People' accreditation status, this paper empirically examines if accreditation promotes upskilling. Fixed effects estimates reveal that accreditation enhances on-the-job training but only in private sector organisations. Difference-in-differences estimates using unaccredited and di-accredited organisations as alternative matched comparators reinforce the FE findings. Policy may have to further engender accreditation schemes that boost worker upskilling to address the productivity concerns and to cope with the rapid technological changes better.

Suggested Citation

  • Haile, Getinet Astatike, 2018. "Organisational Accreditation and Worker Upskilling in Britain," IZA Discussion Papers 11479, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11479
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    References listed on IDEAS

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    1. repec:sae:ecolab:v:27:y:2016:i:4:p:453-470 is not listed on IDEAS
    2. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
    3. Bruce A. Rayton & Konstantinos Georgiadis, 2012. "Workplace self-selection into Investors in People," Applied Economics Letters, Taylor & Francis Journals, vol. 19(15), pages 1455-1458, October.
    4. Heckman, James J. & Kautz, Tim, 2012. "Hard evidence on soft skills," Labour Economics, Elsevier, vol. 19(4), pages 451-464.
    5. Kim Hoque, 2003. "All in All, it's Just Another Plaque on the Wall: The Incidence and Impact of the Investors in People Standard," Journal of Management Studies, Wiley Blackwell, vol. 40(2), pages 543-571, March.
    6. Donald B. Rubin, 2005. "Causal Inference Using Potential Outcomes: Design, Modeling, Decisions," Journal of the American Statistical Association, American Statistical Association, vol. 100, pages 322-331, March.
    7. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
    8. João Paulo Pessoa & John Van Reenen, 2014. "The UK Productivity and Jobs Puzzle: Does the Answer Lie in Wage Flexibility?," Economic Journal, Royal Economic Society, vol. 0(576), pages 433-452, May.
    9. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," Review of Economic Studies, Oxford University Press, vol. 65(2), pages 261-294.
    10. Kim Hoque & Scott Taylor & Emma Bell, 2005. "Investors in People: Market-led Voluntarism in Vocational Education and Training," British Journal of Industrial Relations, London School of Economics, vol. 43(1), pages 135-153, March.
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    More about this item

    Keywords

    on-the-job training; organisation; accreditation; impact; panel data;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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