Is Training More Frequent when Wage Compression is Higher? Evidence from 11 European Countries

Abstract:     
In this empirical paper, I use the 1996 wave of the ECHP dataset to investigate the relationship between measures of wage compression and training incidence in 11 European countries. I find that, after controlling for individual factors and country specific institutional differences, there is evidence of a positive and significant relationship between wage compression and training. This positive relationship is confirmed when I consider only general training. While the former finding is consistent with both competitive and non-competitive approaches to training, the latter result is only consistent with the non-competitive approach.

Keywords: Training, Europe

JEL Classifications: J24, J31

Working Paper Series