Employer Provided Further Training: Evidence from German Establishment Data
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Employer Provided Further Training: Evidence from German Establishment Data
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 121(2001), Iss. 2 : pp. 139–164
24 Citations (CrossRef)
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Gerlach, Knut
Jirjahn, Uwe
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Abstract
Using Panel data from a representative sample of manufacturing firms this paper investigates the determinants of employer provided further training. The composition of the workforce, characteristics of the firm, technology and the organization of work, industrial relations and incentive systems are important determinants of the training decision: (i) It is shown that training correlates positively with the employees' level of qualification, (ii) An advanced technology and participative forms of work organization have a positive impact on training, (iii) Although in general there is negative correlation between the proportion of blue-collar workers and employer provided training blue-collar workers are more likely to receive training in establishments characterized by innovative activities and a participative work organization, (iv) Since the existence of a works council increases training expenditures it is argued that works councils alleviate some of the problems related to training such as poaching, holdups and inefficient separations, (v) Further training is more likely in larger firms and it is less likely in establishments which are not part of a multi-establishment firm.