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Unions, Work-Related Training, and Wages: Evidence for British Men

  • Booth, Alison L.

    ()

    (Australian National University)

  • Francesconi, Marco

    ()

    (University of Essex)

  • Zoega, Gylfi

    ()

    (Birkbeck College, University of London)

Using data from the British Household Panel Survey from 1991 to 1996, the authors investigate the impact of union coverage on work-related training and how the union-training link affects wages and wage growth for a sample of full-time men. Relative to uncovered workers, union-covered men are more likely to receive training and also receive more days of training. In addition, union-covered men experience greater returns to training, and coveredtrained workers face a higher wage growth. While some of these findings have been found in previous studies, others are new. The wage results, in particular, suggest a rethinking is warranted of the conventional view that union wage formation in Britain reduces the incentives to acquire work-related training.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 737.

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Length: 45 pages
Date of creation: Mar 2003
Date of revision:
Publication status: published in: Industrial and Labor Relations Review, 2003, 57 (1), 68-91
Handle: RePEc:iza:izadps:dp737
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  1. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
  2. Daron Acemoglu & Joern-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," Working papers 98-12, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. Stephen Machin, 2000. "Union Decline in Britain," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 631-645, December.
  4. repec:eme:rlepps:v:18:y:1999:i:1999:p:303-330 is not listed on IDEAS
  5. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-82, June.
  6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  7. Acemoglu, D. & Pischke, J.S., 1997. "The Structure of Wages and Investment in General Training," Working papers 97-24, Massachusetts Institute of Technology (MIT), Department of Economics.
  8. Francis Green & Stephen Machin & David Wilkinson, 1999. "Trade unions and training practices in British workplaces," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(2), pages 179-195, January.
  9. Booth, Alison L & Chatterji, Monojit, 1998. "Unions and Efficient Training," Economic Journal, Royal Economic Society, vol. 108(447), pages 328-43, March.
  10. Kenneth Y. Chay & James L. Powell, 2001. "Semiparametric Censored Regression Models," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 29-42, Fall.
  11. Pischke, Jörn-Steffen, 2000. "Continuous Training in Germany," IZA Discussion Papers 137, Institute for the Study of Labor (IZA).
  12. Joseph G. Altonji & James R. Spletzer, 1991. "Worker Characteristics, Job Characteristics, and the Receipt of On-the-Job Training," ILR Review, Cornell University, ILR School, vol. 45(1), pages 58-79, October.
  13. Joseph Altonji & R. Shakotko, 1985. "Do Wages Rise with Job Seniority?," Working Papers 567, Princeton University, Department of Economics, Industrial Relations Section..
  14. Jonathan R. Veum, 1995. "Sources of training and their impact on wages," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(4), pages 812-826, July.
  15. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July.
  16. Greenhalgh, Christine & Mavrotas, George, 1994. "The Role of Career Aspirations and Financial Constraints in Individual Access to Vocational Training," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 579-604, October.
  17. 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.
  18. Parent, Daniel, 2000. "Industry-Specific Capital and the Wage Profile: Evidence from the National Longitudinal Survey of Youth and the Panel Study of Income Dynamics," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 306-23, April.
  19. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
  20. 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.
  21. John Van Reenen, 2000. "Who gains when workers train? Training and corporate productivity in a panel of British industries," IFS Working Papers W00/04, Institute for Fiscal Studies.
  22. Joseph G. Altonji & James R. Spletzer, 1991. "Worker characteristics, job characteristics, and the receipt of on-the-job training," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(1), pages 58-79, October.
  23. Audrey Light & Kathleen McGarry, 1998. "Job Change Patterns And The Wages Of Young Men," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 276-286, May.
  24. Booth, Alison L, 1991. "Job-Related Formal Training: Who Receives It and What Is It Worth?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(3), pages 281-94, August.
  25. Jonathan R. Veum, 1995. "Sources of Training and Their Impact on Wages," ILR Review, Cornell University, ILR School, vol. 48(4), pages 812-826, July.
  26. Booth, Alison L. & Francesconi, Marco & Zoega, Gylfi, 2002. "Oligopsony, Institutions and the Efficiency of General Training," IZA Discussion Papers 618, Institute for the Study of Labor (IZA).
  27. John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ojt, March.
  28. Farber, Henry S, 1983. "The Determination of the Union Status of Workers," Econometrica, Econometric Society, vol. 51(5), pages 1417-37, September.
  29. Lisa M. Lynch & Sandra E. Black, 1998. "Beyond the incidence of employer-provided training," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(1), pages 64-81, October.
  30. Barron, John M & Fuess, Scott M, Jr & Loewenstein, Mark A, 1987. "Further Analysis of the Effect of Unions on Training [Union Wages, Temporary Layoffs, and Seniority]," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 632-40, June.
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