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Employee Training and Wage Dispersion: White and Blue Collar Workers in Britain

  • Almeida-Santos, Filipe

    ()

    (Universidade Catolica Portuguesa, Lisbon)

  • Chzhen, Yekaterina

    ()

    (University of Oxford)

  • Mumford, Karen A.

    ()

    (University of York)

We use household panel data to explore the wage returns associated with training incidence and intensity (duration) for British employees. We find these returns differ depending on the nature of the training; who funds the training; the skill levels of the recipient (white or blue collar); the age of the employee; and if the training is with the current employer or not. Using decomposition analysis, training is found to be positively associated with wage dispersion: a virtuous circle of wage gains and training exists in Britain but only for white-collar employees.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4821.

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Length: 29 pages
Date of creation: Mar 2010
Date of revision:
Publication status: published in: Research In Labor Economics, 2010, 30, 35-60
Handle: RePEc:iza:izadps:dp4821
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  10. Mark Bryan & Wiji Arulampalam & Alison Booth, 2004. "Are There Asymmetries In The Effects Of Training On The Conditional Male Wage Distribution?," Royal Economic Society Annual Conference 2004 115, Royal Economic Society.
  11. Regan, Tracy L. & Oaxaca, Ronald L., 2006. "Work Experience as a Source of Specification Error in Earnings Models: Implications for Gender Wage Decompositions," IZA Discussion Papers 1920, Institute for the Study of Labor (IZA).
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  18. Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 142-71, January.
  19. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
  20. Ariga, Kenn & Brunello, Giorgio, 2002. "Are the More Educated Receiving More Training? Evidence from Thailand," IZA Discussion Papers 577, Institute for the Study of Labor (IZA).
  21. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2004. "Are there asymmetries in the effects of training on the conditional male wage distribution," ISER Working Paper Series 2004-01, Institute for Social and Economic Research.
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  24. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
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