[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/bla/labour/v23y2009is1p37-59.html
   My bibliography  Save this article

Training and Low‐pay Mobility: The Case of the UK and the Netherlands

Author

Listed:
  • Dimitris Pavlopoulos
  • Ruud Muffels
  • Jeroen K. Vermunt
Abstract
This paper investigates the effect of training on low‐pay mobility in the UK and the Netherlands. We contribute to the literature by estimating the ‘true’ effect of training correcting for measurement error and transitory fluctuations — random shocks — of earnings. This is accomplished by using a random‐effects multinomial logit model with a latent structure to take account of the measurement error. Our results indicate that although the countries have rather different training practices, training increases the likelihood for moving from low to higher pay and reduces the likelihood for a transition from higher pay to low pay. However, in the UK, contrary to what we expected, work‐related or firm‐specific training programmes but not general training programmes pay off better for the intermediate‐ and the higher‐educated workers. No effect of training is found for the low‐educated workers. The lower‐skilled seem to gain less than the high‐skilled from firms' investments in human capital in the UK.

Suggested Citation

  • Dimitris Pavlopoulos & Ruud Muffels & Jeroen K. Vermunt, 2009. "Training and Low‐pay Mobility: The Case of the UK and the Netherlands," LABOUR, CEIS, vol. 23(s1), pages 37-59, March.
    • Handle: RePEc:bla:labour:v:23:y:2009:i:s1:p:37-59
    DOI: 10.1111/j.1467-9914.2008.00438.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9914.2008.00438.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9914.2008.00438.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daron Acemoglu, 2003. "Cross-Country Inequality Trends," Economic Journal, Royal Economic Society, vol. 113(485), pages 121-149, February.
    2. 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 281-294, August.
    3. Edwin Leuven & Hessel Oosterbeek, 2002. "A New Approach to estimate the Wage Returns to Work-related Training," Tinbergen Institute Discussion Papers 02-091/3, Tinbergen Institute.
    4. Jörn-Steffen Pischke, 2001. "Continuous training in Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 14(3), pages 523-548.
    5. Parent, Daniel, 1999. "Wages and Mobility: The Impact of Employer-Provided Training," Journal of Labor Economics, University of Chicago Press, vol. 17(2), pages 298-317, April.
    6. Daron Acemoglu, 2003. "Patterns of Skill Premia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 199-230.
    7. Sloane, P J & Theodossiou, I, 1996. "Earnings Mobility, Family Income and Low Pay," Economic Journal, Royal Economic Society, vol. 106(436), pages 657-666, May.
    8. Mark B. Stewart & Joanna K. Swaffield, 1999. "Low Pay Dynamics and Transition Probabilities," Economica, London School of Economics and Political Science, vol. 66(261), pages 23-42, February.
    9. Wiji Arulampalam & Alison L. Booth & Mark L. Bryan, 2004. "Training in Europe," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 346-360, 04/05.
    10. repec:aia:aiaswp:wp46 is not listed on IDEAS
    11. Lynch, Lisa M, 1992. "Private-Sector Training and the Earnings of Young Workers," American Economic Review, American Economic Association, vol. 82(1), pages 299-312, March.
    12. Duncan, Greg J & Hoffman, Saul, 1979. "On-the-Job Training and Earnings Differences by Race and Sex," The Review of Economics and Statistics, MIT Press, vol. 61(4), pages 594-603, November.
    13. Peter Gottschalk, 2005. "Downward Nominal-Wage Flexibility: Real or Measurement Error?," The Review of Economics and Statistics, MIT Press, vol. 87(3), pages 556-568, August.
    14. Ulrich Rendtel & Rolf Langeheine & Roland Berntsen, 1998. "The Estimation Of Poverty Dynamics Using Different Measurements Of Household Income," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(1), pages 81-98, March.
    15. Pischke, Jorn-Steffen, 1995. "Measurement Error and Earnings Dynamics: Some Estimates from the PSID Validation Study," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(3), pages 305-314, July.
    16. Jacob Mincer, 1988. "Job Training, Wage Growth, and Labor Turnover," NBER Working Papers 2690, National Bureau of Economic Research, Inc.
    17. Lorenzo Cappellari & Stephen P. Jenkins, 2004. "Modelling low income transitions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(5), pages 593-610.
    18. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1.
    19. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    20. Jeroen K. Vermunt & Rolf Langeheine & Ulf Bockenholt, 1999. "Discrete-Time Discrete-State Latent Markov Models with Time-Constant and Time-Varying Covariates," Journal of Educational and Behavioral Statistics, , vol. 24(2), pages 179-207, June.
    21. Rolf Langeheine & Frank Van De Pol, 1990. "A Unifying Framework for Markov Modeling in Discrete Space and Discrete Time," Sociological Methods & Research, , vol. 18(4), pages 416-441, May.
    22. Shorrocks, A F, 1976. "Income Mobility and the Markov Assumption," Economic Journal, Royal Economic Society, vol. 86(343), pages 566-578, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Picchio, Matteo & van Ours, Jan C., 2013. "Retaining through training even for older workers," Economics of Education Review, Elsevier, vol. 32(C), pages 29-48.
    2. Pavol Babos, 2014. "Step or trap? Transition from fixed-term contracts in Central Eastern Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 26(1), pages 39-52, March.
    3. Rahmah Ismail & Zulridah Noor & Abd Awang, 2011. "Impact of Training under Human Resource Development Limited on Workers’ Mobility in Selected Malaysian Services Sector," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 1(2), pages 146-159, December.
    4. Duncan McVicar & Mark Wooden & Felix Leung & Ning Li, 2016. "Work-Related Training and the Probability of Transitioning from Non-Permanent to Permanent Employment," British Journal of Industrial Relations, London School of Economics, vol. 54(3), pages 623-646, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Grit Muehler & Michael Beckmann & Bernd Schauenberg, 2007. "The returns to continuous training in Germany: new evidence from propensity score matching estimators," Review of Managerial Science, Springer, vol. 1(3), pages 209-235, November.
    2. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    3. Cecilia ALBERT & Carlos GARCÍA-SERRANO & Virginia HERNANZ, 2010. "On-the-job training in Europe: Determinants and wage returns," International Labour Review, International Labour Organization, vol. 149(3), pages 315-341, September.
    4. Simone Tuor & Uschi Backes-Gellner, 2009. "Time - Even More Costly Than Money: Training Costs of Workers and Firms," Economics of Education Working Paper Series 0046, University of Zurich, Department of Business Administration (IBW).
    5. FOUARGE Didier & MUFFELS Ruud & PAVLOPOULOS Dimitris & VERMUNT Jeroen K., 2007. "Who benefits from a job change: The dwarfs or the giants?," IRISS Working Paper Series 2007-16, IRISS at CEPS/INSTEAD.
    6. Salas-Velasco, Manuel, 2009. "Beyond lectures and tutorials: Formal on-the-job training received by young European university graduates," Research in Economics, Elsevier, vol. 63(3), pages 200-211, September.
    7. Rita Asplund, 2005. "The Provision and Effects of Company Training: A Brief Review of the Literature," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 47-73.
    8. Maite Blázquez Cuesta & Wiemer Salverda, 2009. "Low‐wage Employment and the Role of Education and On‐the‐job Training," LABOUR, CEIS, vol. 23(s1), pages 5-35, March.
    9. Jozef Konings & Stijn Vanormelingen, 2015. "The Impact of Training on Productivity and Wages: Firm-Level Evidence," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 485-497, May.
    10. Vilhuber, Lars, 2001. "La spécificité de la formation en milieu de travail : un survol des contributions théoriques et empiriques récentes," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(1), pages 133-167, mars.
    11. Anna Ruzik-Sierdzinska & Claudia Villosio & Michele Belloni & Maciej Lis & Monika Potoczna, 2013. "Age and productivity. Human Capital Accumulation and Depreciation," CASE Network Reports 0114, CASE-Center for Social and Economic Research.
    12. Julia Lang, 2012. "The Aims of Lifelong Learning: Age-Related Effects of Training on Wages and Job Security," SOEPpapers on Multidisciplinary Panel Data Research 478, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Ericson, Thomas, 2004. "The effects of wage compression on training: Swedish empirical evidence," Working Paper Series 2004:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    14. Daniel Dietz & Thomas Zwick, 2016. "The retention effect of training – portability, visibility, and credibility," Economics of Education Working Paper Series 0113, University of Zurich, Department of Business Administration (IBW).
    15. Katja Görlitz, 2010. "Continuous Training and Wages – An Empirical Analysis Using a Comparison-group Approach," Ruhr Economic Papers 0197, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    16. repec:zbw:rwirep:0197 is not listed on IDEAS
    17. Sauermann, Jan & Stenberg, Anders, 2020. "Assessing Selection Bias in Non-Experimental Estimates of the Returns to Workplace Training," IZA Discussion Papers 13789, Institute of Labor Economics (IZA).
    18. Görlitz, Katja, 2011. "Continuous training and wages: An empirical analysis using a comparison-group approach," Economics of Education Review, Elsevier, vol. 30(4), pages 691-701, August.
    19. Michael Gerfin & Robert E. Leu & Reto Nyffeler, 2003. "Berufliche Weiterbildung in der Schweiz," Diskussionsschriften dp0318, Universitaet Bern, Departement Volkswirtschaft.
    20. Inge Sieben, 2007. "Does training trigger turnover - or not?," Work, Employment & Society, British Sociological Association, vol. 21(3), pages 397-416, September.
    21. Siang, Liew & Noor, Zulridah, 2015. "The Impact of Training on the Conditional Wage Distribution in Selected Service Subsectors in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 49(1), pages 37-48.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:labour:v:23:y:2009:i:s1:p:37-59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/csrotit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.