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

Brunello, Giorgio, "Is Training More Frequent when Wage Compression is Higher? Evidence from 11 European Countries" (January 2002). FEEM Working Paper No. 10.2002; CESifo Working Paper Series No. 637. Available at SSRN:


    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.
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