ERIC Number: EJ741986
Record Type: Journal
Publication Date: 2006-Jun
Reference Count: N/A
Determinants and Developments of Employer Provided Training: Evidence from a Wage Compressed Environment
Journal of Vocational Education and Training, v58 n2 p237-254 Jun 2006
Using a representative employer-employee level dataset, this paper answers four questions: (1) What characterises employer provided training in Norway? (2) What characterises firms that invest heavily in employer provided training? (3) Is it the same firms that invest in employer provided all the time? (4) Has the level of employer provided training increased in recent years? First, employer provided training in Norway is paid for by the firm and it creates skills that are quite general and transferable to other parts of the labour market. This result is especially interesting when found in a labour market like the Norwegian, characterized by a very compressed wage structure. Second, unionized firms, female dominated firms, high-educated firms, small firms, firms using new work practices, and technology intensive firms are more likely to offer training to their workers. Third, firms that invested heavily in training in the previous period are most likely the same firms that invest much in training in the present period as well. Put simply: "Training firms" train all the time, "Non-training firms" do not train at all. Fourth, the level of firm investments in training has increased in recent years, but the increase disappears as soon as we control for the level of education. Our interpretation of this is that higher level of education among the employees has created an increased need for training, so the level of training "has" increased, but for a "given" level of education, the level of training is approximately the same.
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Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Authoring Institution: N/A
Identifiers - Location: Norway