Measuring the impact of on the job training on job mobility

  1. Gema Álvarez 1
  2. Raquel Carrasco 2
  1. 1 Universidade de Vigo
    info

    Universidade de Vigo

    Vigo, España

    ROR https://ror.org/05rdf8595

  2. 2 Universidad Carlos III de Madrid
    info

    Universidad Carlos III de Madrid

    Madrid, España

    ROR https://ror.org/03ths8210

Journal:
Revista de economía aplicada

ISSN: 1133-455X

Year of publication: 2016

Volume: 24

Issue: 70

Pages: 5-25

Type: Article

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Abstract

This paper studies the effect of employer-provided training on the probability of subsequent job exit. Empirical evidence usually shows that the probability of receiving training by the employer is higher among those employees with the lowest expected rates of turnover. Therefore, it seems that firms provide training selectively. In this paper, we address the empirical question of to what extent this endogeneity problem leads to a spurious correlation between training receipt and job mobility. Using Spanish Data from the European Community Household Panel, we provide estimates that ignore the selection bias and compare the results with the ones obtained when correcting for the possible nonrandom selection between trainees and non-trainees. Overall, our results show that there is a negative correlation between on the job training and job mobility, but only for fired workers, and not for voluntary movers. Nonetheless, once the endogeneity problem is accounted, the negative effect becomes statistically nonsignificant for all types of movers.

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Funding information

The second author acknowledges research funding from the Spanish Ministry of Science and Innovation, Grant No. ECO2012-31358.

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