Human capital development: employer-provided training

The last few decades have witnessed major changes in production technologies, which together with the availability of a highly skilled workforce, are considered as among the key factors determining competitiveness in the global economy. Since training is a mechanism to upgrade workers’ skills, it would be expected that technical progress strengthens the importance of training. This book theoretically and empirically examines the link between technological change and employer-provided training. For the UK data are extracted from the Workplace Employment Relations Survey and for Germany data from the IAB establishment panel. Empirical findings indicate that in the UK technology changes positively impact upon the length of training provided by workplaces, while in Germany a greater share of workers undergo further training in establishments subject to technological change. An important issue raised in this book, is the possibility of endogeneity/simultaneity between training and technological change. Finally, the book critically examines the recommendation that a payroll level scheme be adopted in order to foster firms’ training provision.