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Employee Training and Wage Compression in Britain

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  • Almeida-Santos, Filipe

    () (Universidade Catolica Portuguesa, Lisbon)

  • Mumford, Karen A.

    () (University of York)

Abstract

We use linked data for 1,460 workplaces and 19,853 employees from the Workplace Employee Relations Survey 1998 to analyse the incidence and duration of employee training in Britain. We find training to be positively associated with having a recognised vocational qualification and current union membership. Whilst being non-white, shorter current job tenure, and part-time or fixed-term employment statuses are all associated with less training. Furthermore, in line with recent non-competitive training models, higher levels of wage compression (measured in absolute or relative terms) are positively related to training.

Suggested Citation

  • Almeida-Santos, Filipe & Mumford, Karen A., 2004. "Employee Training and Wage Compression in Britain," IZA Discussion Papers 1197, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1197
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    References listed on IDEAS

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    Cited by:

    1. Pfeifer, Christian, 2013. "Intra-firm Wage Compression and Cost Coverage of Training: Evidence from Linked Employer-Employee Data," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80030, Verein für Socialpolitik / German Economic Association.
    2. Marloes de Graaf-Zijl, 2005. "The Attractiveness of Temporary Employment to Reduce Adjustment Costs," Tinbergen Institute Discussion Papers 05-121/3, Tinbergen Institute.
    3. Almeida-Santos, Filipe & Mumford, Karen A., 2006. "Employee Training, Wage Dispersion and Equality in Britain," IZA Discussion Papers 2276, Institute for the Study of Labor (IZA).
    4. Merja Kauhanen & Jouko Nätti, 2015. "Involuntary Temporary and Part-Time Work, Job Quality and Well-Being at Work," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(3), pages 783-799, February.
    5. Panos, Sousounis, 2009. "The Impact of Work-Related Training on Employee Earnings: Evidence from Great Britain," MPRA Paper 14262, University Library of Munich, Germany.
    6. repec:spr:anresc:v:60:y:2018:i:2:d:10.1007_s00168-016-0797-y is not listed on IDEAS
    7. Didier Fouarge & Andries Grip & Wendy Smits & Robert Vries, 2012. "Flexible Contracts and Human Capital Investments," De Economist, Springer, vol. 160(2), pages 177-195, June.
    8. Filipe Almeida-Santos & Yekaterina Chzhen & Karen Mumford, 2010. "Employee training and wage dispersion: white- and blue-collar workers in Britain," Research in Labor Economics,in: Jobs, Training, and Worker Well-being, volume 30, pages 35-60 Emerald Publishing Ltd.
    9. C. Jeffrey Waddoups, 2014. "Union Membership and Job-Related Training: Incidence, Transferability, and Efficacy," British Journal of Industrial Relations, London School of Economics, vol. 52(4), pages 753-778, December.
    10. Ardiana N. Gashi & Geoff Pugh & Nick Adnett, 2010. "Technological change and employer-provided training: evidence from UK workplaces," International Journal of Manpower, Emerald Group Publishing, vol. 31(4), pages 426-448, July.
    11. Sousounis, Panos & Bladen-Hovell, Robin, 2010. "Persistence in the determination of work-related training participation: Evidence from the BHPS, 1991-1997," Economics of Education Review, Elsevier, vol. 29(6), pages 1005-1015, December.
    12. Chatterji, Monojit & Mumford, Karen A. & Smith, Peter N., 2007. "The Public-Private Sector Gender Wage Differential: Evidence from Matched Employee-Workplace Data," IZA Discussion Papers 3158, Institute for the Study of Labor (IZA).
    13. Ericson, Thomas, 2004. "The effects of wage compression on training: Swedish empirical evidence," Working Paper Series 2004:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    14. Monojit Chatterji & Karen Mumford & Peter N Smith, 2007. "The Public-Private Sector Wage Differential: Gender, Workplaces and Family Friendliness," Dundee Discussion Papers in Economics 202, Economic Studies, University of Dundee.
    15. Uschi Backes-Gellner & Yvonne Oswald & Simone Tuor Sartore, 2014. "Part-Time Employment—Boon to Women but Bane to Men? New Insights on Employer-Provided Training," Kyklos, Wiley Blackwell, vol. 67(4), pages 463-481, November.
    16. Panos Sousounis, 2009. "The Impact of Work-Related Training on Employee Earnings: Evidence from Great Britain," Working Papers 0919, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    17. Christos Bilanakos, 2011. "Optimal Contracts and Investment in General Human Capital under Common Agency," University of Cyprus Working Papers in Economics 08-2011, University of Cyprus Department of Economics.
    18. Stenberg, Anders, 2006. "Skill needs and continuing vocational training in Sweden," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-109, Social Science Research Center Berlin (WZB).
    19. Giorgio Brunello & Maria De Paola, 2004. "Market Failures and the Under-Provision of Training," CESifo Working Paper Series 1286, CESifo Group Munich.
    20. Sousounis, Panos & Bladen-Hovell, Robin, 2008. "Persistence in work-related training: evidence from the BHPS, 1991-1998," MPRA Paper 9424, University Library of Munich, Germany.
    21. Kim Hoque & Nicolas Bacon, 2008. "Trade Unions, Union Learning Representatives and Employer-Provided Training in Britain," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 702-731, December.

    More about this item

    Keywords

    wage compression; performance; training;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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