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The Development of Employers’ Training Investments Over Time – A Decomposition Analysis Using German Establishment Data

  • Katja Goerlitz

    ()

Using establishment data covering the time period 1997 to 2007, this paper investigates trends of employer-sponsored further training in Germany, with a focus on the share of establishments investing in training. In West and East Germany alike I find a positive time trend in the share of training active establishments. Applying Oaxaca-Blinder decomposition techniques shows that changes in some establishment characteristics affect the trend, however not only in a positive way. While the increase of the fraction of skilled workers, changes in industry composition and the risen share of innovative establishments contributed positively to the trend, the decreased fraction of establishments engaged in collective bargaining operates in opposite direction. In spite of these findings, the overall characteristics effect is rather small.

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File URL: http://repec.rwi-essen.de/files/REP_09_087.pdf
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Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0087.

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Length: 22 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:rwi:repape:0087
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  1. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  3. Jorn-Steffen Pischke, 1996. "Continuous Training in Germany," NBER Working Papers 5829, National Bureau of Economic Research, Inc.
  4. Chang, Chun & Wang, Yijiang, 1996. "Human Capital Investment under Asymmetric Information: The Pigovian Conjecture Revisited," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 505-19, July.
  5. Acemoglu, D. & Pischki, J.S., 1996. "Why Do Firms Train? Theory and Evidence," Working papers 96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. Katz, Eliakim & Ziderman, Adrian, 1990. "Shared investment in general training : the role of information," Policy Research Working Paper Series 535, The World Bank.
  7. Thomas Bauer & Mathias Sinning, 2008. "An extension of the Blinder–Oaxaca decomposition to nonlinear models," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 92(2), pages 197-206, May.
  8. Harley Frazis & Maury Gittleman & Mary Joyce, 2000. "Correlates of Training: An Analysis Using Both Employer and Employee Characteristics," ILR Review, Cornell University, ILR School, vol. 53(3), pages 443-462, April.
  9. John M. Barron & Mark C. Berger & Dan A. Black, 1999. "Do Workers Pay for On-The-Job Training?," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 235-252.
  10. Katz, Eliakim & Ziderman, Adrian, 1990. "Investment in General Training: The Role of Information and Labour Mobility," Economic Journal, Royal Economic Society, vol. 100(403), pages 1147-58, December.
  11. Mark A. Loewenstein & James R. Spletzer, 1999. "General and Specific Training: Evidence and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 34(4), pages 710-733.
  12. Lisa M. Lynch & Sandra E. Black, 1998. "Beyond the Incidence of Employer-Provided Training," ILR Review, Cornell University, ILR School, vol. 52(1), pages 64-81, October.
  13. Kuckulenz, Anja & Meyer, Jenny, 2006. "Die Entscheidung über betriebliche Weiterbildungsinvestitionen: Eine empirische Analyse mit dem Mannheimer Innovationspanel," ZEW Discussion Papers 06-89, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  14. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 339-376.
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