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Article
The determinants and effects of work-related training
Date started: 19 August 2002
The study uses data from the National Child Development Survey to look at the determinants and effects of work-related training among employees in Britain. Just over half of the individual employed in 1991 in our NCDS sample undertook some form of work-related training between 1981 and 1991. In looking at the determinants of training, we focus on employer-provided training courses and work related training leading to a formal vocational qualification (both employer- and non-employer-provided). We find:

  • men have a substantially higher probability than women of undertaking employer provided training and work related training leading to a formal vocational qualification;
  • more highly educated people have a greater probability of receiving both types of training. Work-related training is also found to have a significant impact on the earnings prospects of individuals. We find:
  • employer provided training has significant returns to individual workers - adding some 5 per cent to their real earnings over the 10 year period under study;
  • individuals who obtained a middle or higher vocational qualification from their work-related training receive even higher pay-offs of between 5 and 10 per cent;
  • the returns to employer-provided training are surprisingly transferable across employers.
  • work-related training appears to be particularly important for the wage prospects of individuals with intermediate level school qualifications, although these individuals are also less likely to obtain work-related training.

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01 August 2006
Journal Articles
Article
This paper examines the effects of work-related training on direct measures of productivity.

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