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The Impact of Work-Related Training on Employee Earnings: Evidence from Great Britain

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  • Panos, Sousounis

Abstract

Using data from the British Household Panel Survey for the years 1998-2005, this study estimates the impact of work-related training on earnings levels. Different measures for general and specific training are constructed from available information. The analysis diverges from the standard fixed effects framework for earnings determination modelling and presents evidence in support of the predictions of the standard human capital theory with regards to training sponsoring using a random effects formulation for the earnings equation suggested by Nijman and Verbeek (1992) for controlling for attrition bias in unbalanced panels.

Suggested Citation

  • Panos, Sousounis, 2009. "The Impact of Work-Related Training on Employee Earnings: Evidence from Great Britain," MPRA Paper 14262, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:14262
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    References listed on IDEAS

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    7. Filipe Almeida‐Santos & Karen Mumford, 2005. "Employee Training And Wage Compression In Britain," Manchester School, University of Manchester, vol. 73(3), pages 321-342, June.
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    12. Nijman, Theo & Verbeek, Marno, 1992. "Nonresponse in Panel Data: The Impact on Estimates of a Life Cycle Consumption Function," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 7(3), pages 243-257, July-Sept.
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    Cited by:

    1. Daria Luchinskaya & Peter Dickinson, 2019. "‘Virtuous’ and ‘Vicious’ Circles? Adults’ Participation in Different Types of Training in the UK and Its Association with Wages," Social Inclusion, Cogitatio Press, vol. 7(3), pages 177-201.
    2. Rita Almeida & Marta Faria, 2014. "The wage returns to on-the-job training: evidence from matched employer-employee data," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-33, December.
    3. Tamilina, Larysa & Tamilina, Natalya, 2013. "From Learning to Knowing: A Psychological-Neurological Approach to Explain the Human Capital Formation Process," MPRA Paper 63201, University Library of Munich, Germany.

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    More about this item

    Keywords

    work-related training; human capital; earnings;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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