Job-Related Training in Europe: Do Institutions Matter?

This chapter looks at the determinants and impact of job-related training of employees in seven European countries: Germany, France, Spain, Finland, The UK and Ireland. The paper takes advantage of differences within and between countries to explore the influence of labour market institutions on training. The analysis shows that workers with higher skills are more likely to receive training. It also show s that workers in sectors with higher unionization rates and with lower wage dispersion are moir‚ likely to receive training, suggesting that labour market institutions influence the incentive structures for training. The analysis of the returns to training suggests that training is associated with increased wages, but this effect disappears when selection is controlled for.