Dual Labour Markets and (Lack of) On-the-Job Training: PIAAC Evidence from Spain and Other EU Countries

36 Pages Posted: 22 Nov 2014

See all articles by Antonio Cabrales

Antonio Cabrales

University College London - Department of Economics; Centre for Economic Policy Research (CEPR); Universidad Carlos III de Madrid

Juan Jose Dolado

Universidad Carlos III de Madrid - Department of Economics; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

Ricardo Mora

Universidad Carlos III de Madrid

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Abstract

Using the Spanish micro data from the Programme for the International Assessment of Adult Competencies (PIAAC), we first document how the excessive gap in employment protection between indefinite and temporary workers leads to large differentials in on-the-job training (OTJ) against the latter. Next, we find that that the lower specific training received by temporary workers is correlated with lower literacy and numeracy scores achieved in the PIAAC study. Finally, we provide further PIAAC cross-country evidence showing that OJT gaps are quite lower in those European labour markets where dualism is less entrenched than in those where it is more extended.

Keywords: dual labour market, on-the-job training, cognitive skills, severance pay

JEL Classification: C14, C52, D24, J24

Suggested Citation

Cabrales, Antonio and Dolado, Juan Jose and Mora, Ricardo, Dual Labour Markets and (Lack of) On-the-Job Training: PIAAC Evidence from Spain and Other EU Countries. IZA Discussion Paper No. 8649, Available at SSRN: https://ssrn.com/abstract=2529358 or http://dx.doi.org/10.2139/ssrn.2529358

Antonio Cabrales (Contact Author)

University College London - Department of Economics ( email )

Drayton House, 30 Gordon Street
30 Gordon Street
London, WC1H 0AX
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Universidad Carlos III de Madrid ( email )

CL. de Madrid 126
Madrid, Madrid 28903
Spain

Juan Jose Dolado

Universidad Carlos III de Madrid - Department of Economics ( email )

Calle Madrid 126
Getafe, 28903
Spain
+34 91 624 9300 (Phone)
+34 91 624 9313 (Fax)

HOME PAGE: http://www.eco.uc3m.es/english/staff/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Institute for the Study of Labor (IZA)

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

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Ricardo Mora

Universidad Carlos III de Madrid

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