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Persistence in work-related training: evidence from the BHPS, 1991-1998

  • Sousounis, Panos
  • Bladen-Hovell, Robin

In this paper we investigate the role of workers’ training history in determining current training incidence. The analysis is conducted on an unbalanced sample comprising information on approximately 5000 employees from the first seven waves of the BHPS. Our methodology utilizes a two-step dynamic probit model developed by Orme (2001) which allows for unobserved heterogeneity and formal modelling of initial conditions. The results suggest that prior training experience is a significant determinant of a worker’s participation in a current training episode comparable with other formal educational qualifications. State dependence in the model accounts for 53% of the probability of training the current period, conditional on having experienced some form of work-related training in the previous period. For women, however, the corresponding figure is lower at approximately 38% suggesting substantially greater state dependence among male workers.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9424.

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Date of creation: Mar 2008
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Handle: RePEc:pra:mprapa:9424
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  1. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," Working Papers 70, Barcelona Graduate School of Economics.
  2. Richard Blundell & Lorraine Dearden & Costas Meghir & Barbara Sianesi, 1999. "Human capital investment: the returns from education and training to the individual, the firm and the economy," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 1-23, March.
  3. Filipe Almeida-Santos & Karen Mumford, 2005. "Employee Training And Wage Compression In Britain," Manchester School, University of Manchester, vol. 73(3), pages 321-342, 06.
  4. 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.
  5. Black, Sandra E & Lynch, Lisa M, 1996. "Human-Capital Investments and Productivity," American Economic Review, American Economic Association, vol. 86(2), pages 263-67, May.
  6. Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
  7. Dearden, Lorraine & Reed, Howard & Van Reenen, John, 2000. "Who Gains when Workers Train? Training and Corporate Productivity in a Panel of British Industries," CEPR Discussion Papers 2486, C.E.P.R. Discussion Papers.
  8. Alfonso Miranda, 2007. "Dynamic probit models for panel data: A comparison of three methods of estimation," United Kingdom Stata Users' Group Meetings 2007 11, Stata Users Group.
  9. 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.
  10. Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
  11. Arulampalam, W., 1998. "A Note on Estimated Coefficients in Random Effects Probit Models," The Warwick Economics Research Paper Series (TWERPS) 520, University of Warwick, Department of Economics.
  12. Booth, Alison L. & Bryan, Mark L., 2002. "Who Pays for General Training? New Evidence for British Men and Women," IZA Discussion Papers 486, Institute for the Study of Labor (IZA).
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