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Measuring the impact of on the job training on job mobility

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  • Carrasco, Raquel
  • Alvarez, Gema

Abstract

This paper studies the effect of employer-provided training on the probability of subsequent job exit. Empirical evidence usually shows that the probability of receiving training by the employer is higher among those employees with the lowest expected rates of turnover. Therefore, it seems that firms provide training selectively. In this paper, we address the empirical question of to what extent this endogeneity problem leads to a spurious correlation between training receipt and job mobility. Using Spanish Data from the European Community Household Panel, we provide estimates that ignore the selection bias and compare the results with the ones obtained when correcting for the possible nonrandom selection between trainees and non-trainees. Overall, our results show that there is a negative correlation between on the job training and job mobility, but only for fired workers, and not for voluntary movers. Nonetheless, once the endogeneity problem is accounted, the negative effect becomes statistically nonsignificant for all types of movers

Suggested Citation

  • Carrasco, Raquel & Alvarez, Gema, 2013. "Measuring the impact of on the job training on job mobility," MPRA Paper 103353, University Library of Munich, Germany, revised 2015.
  • Handle: RePEc:pra:mprapa:103353
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    File URL: https://mpra.ub.uni-muenchen.de/103353/1/MPRA_paper_103353.pdf
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    References listed on IDEAS

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    4. Daniel Parent, 2003. "Employer-supported training in Canada and its impact on mobility and wages," Empirical Economics, Springer, vol. 28(3), pages 431-459, July.
    5. Wiji Arulampalam & Alison Booth & Mark Bryan, 2010. "Are there asymmetries in the effects of training on the conditional male wage distribution?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 251-272, January.
    6. Bartel, Ann P, 1995. "Training, Wage Growth, and Job Performance: Evidence from a Company Database," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 401-425, July.
    7. Josef Zweimüller & Rudolf Winter-Ebmer, 2003. "On-the-job-training, job search and job mobility," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 139(IV), pages 563-576, December.
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    More about this item

    Keywords

    on the job training; turnover; job mobility;

    JEL classification:

    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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