Is Training More Frequent When Wage Compression Is Higher? Evidence from the European Community Household Panel

Arbeitspapier

When labor markets are imperfectly competitive, firms may be willing to finance general training if the wage structure is compressed, that is, if the increase of productivity after training is greater than the increase in pay. We propose a novel way of testing this proposition, which exploits the variation in training incidence and in the training wage premium within the European Union. Our results unambiguously show that (general) training incidence is higher in clusters – defined by country, sector, occupation and educational attainment – with a lower training wage premium, measured as the differential between the median wage growth of trained and untrained employees.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 839

Classification and Topics

• Classification: Wirtschaft ; Labor Contracts ; Wage Level and Structure; Wage Differentials ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Subject: training ; wage compression ; ECHP ; Betriebliche Bildungsarbeit ; Bildungsinvestition ; Arbeitsproduktivität ; Lohnstruktur ; Schätzung ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bassanini, Andrea ; Brunello, Giorgio
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/20083
• Last update: 10.03.2025, 11:42 AM CET