Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20083
Authors: 
Bassanini, Andrea
Brunello, Giorgio
Year of Publication: 
2003
Series/Report no.: 
IZA Discussion paper series 839
Abstract: 
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.
Subjects: 
training
wage compression
ECHP
JEL: 
J41
J31
J24
Document Type: 
Working Paper

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