Employee Training and Wage Dispersion: White and Blue Collar Workers in Britain

29 Pages Posted: 22 Mar 2010

See all articles by Filipe Almeida-Santos

Filipe Almeida-Santos

University of York (UK); Universidade Católica Portuguesa (UCP)

Yekaterina Chzhen

University of York

Karen Mumford

University of York (UK); IZA Institute of Labor Economics; CAMA

Abstract

We use household panel data to explore the wage returns associated with training incidence and intensity (duration) for British employees. We find these returns differ depending on the nature of the training; who funds the training; the skill levels of the recipient (white or blue collar); the age of the employee; and if the training is with the current employer or not. Using decomposition analysis, training is found to be positively associated with wage dispersion: a virtuous circle of wage gains and training exists in Britain but only for white-collar employees.

Keywords: training, wage compression, performance

JEL Classification: J24, J31, J41

Suggested Citation

Almeida-Santos, Filipe and Chzhen, Yekaterina and Mumford, Karen A., Employee Training and Wage Dispersion: White and Blue Collar Workers in Britain. IZA Discussion Paper No. 4821, Available at SSRN: https://ssrn.com/abstract=1575854 or http://dx.doi.org/10.2139/ssrn.1575854

Filipe Almeida-Santos (Contact Author)

University of York (UK)

Heslington
York YO10 5DD
United Kingdom

Universidade Católica Portuguesa (UCP)

Palma de Cima
Lisboa, 1649-023
Portugal

Yekaterina Chzhen

University of York ( email )

Heslington
University of York
York, YO10 5DD
United Kingdom

Karen A. Mumford

University of York (UK) ( email )

Heslington
York YO10 5DD
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CAMA ( email )

ANU College of Business and Economics
Canberra, Australian Capital Territory 0200
Australia

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