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Employee Training, Wage Dispersion and Equality in Britain

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  • Almeida-Santos, Filipe

    (Universidade Catolica Portuguesa, Lisbon)

  • Mumford, Karen A.

    (University of York)

Abstract

We use British household panel data to explore the wage returns to training incidence and intensity (duration) for 6924 employees. We find these returns differ greatly depending on the nature of the training (general or specific); who funds the training (employee or employer); and the skill levels of the recipient (white or blue collar). Using decomposition analysis, we further conclude that training is positively associated with wage dispersion in Britain and a virtuous circle of wage gains but only for white-collar employees.

Suggested Citation

  • Almeida-Santos, Filipe & Mumford, Karen A., 2006. "Employee Training, Wage Dispersion and Equality in Britain," IZA Discussion Papers 2276, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp2276
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    More about this item

    Keywords

    performance; wage compression; training;
    All these keywords.

    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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