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The Incidence and Intensity of Employer Funded Training: Australian Evidence on the Impact of Flexible Work

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  • Mirko Draca
  • Colin Green

Abstract

The interaction between the growth of flexible forms of employment and employer funded training is important for understanding labour market performance. In particular, the idea of a trade‐off has been advanced to describe potential market failures in the employment of flexible workers. This study finds that evidence of a trade‐off is apparent in both the incidence and intensity of employer funded training. Flexible workers receive training that is 50–80% less intense than the workforce average. Casual workers – especially males – suffer more acutely from the trade‐off. This suggests that flexible production externalities may seriously reduce human capital formation in the workforce.

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  • Mirko Draca & Colin Green, 2004. "The Incidence and Intensity of Employer Funded Training: Australian Evidence on the Impact of Flexible Work," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(5), pages 609-625, November.
    • Handle: RePEc:bla:scotjp:v:51:y:2004:i:5:p:609-625
    DOI: 10.1111/j.0036-9292.2004.00323.x
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    Cited by:

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    5. Didier Fouarge & Andries Grip & Wendy Smits & Robert Vries, 2012. "Flexible Contracts and Human Capital Investments," De Economist, Springer, vol. 160(2), pages 177-195, June.
    6. C. Jeffrey Waddoups, 2012. "Employer-Sponsored Training and Longer-Tenured Workers: Evidence from A ustralia," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 51(4), pages 966-986, October.
    7. Benoit Dostie & Pierre-Thomas Léger, 2008. "Une analyse des déterminants de l'incidence et de l'intensité de la formation des travailleurs québécois selon l'âge et comparaison avec l'Ontario," CIRANO Working Papers 2008s-23, CIRANO.
    8. Inga Laß & Mark Wooden, 2019. "The Structure of the Wage Gap for Temporary Workers: Evidence from Australian Panel Data," British Journal of Industrial Relations, London School of Economics, vol. 57(3), pages 453-478, September.
    9. Gill, Balbinder Singh & Choi, Jongmoo Jay & John, Kose, 2024. "Firm leverage and employee pay: The moderating role of CEO leadership style," International Review of Financial Analysis, Elsevier, vol. 95(PA).
    10. C Green & J S Heywood, 2007. "Are flexible contracts bad for workers? Evidence from job satisfaction data," Working Papers 590927, Lancaster University Management School, Economics Department.
    11. Marloes de Graaf-Zijl, 2005. "The Attractiveness of Temporary Employment to Reduce Adjustment Costs," Tinbergen Institute Discussion Papers 05-121/3, Tinbergen Institute.
    12. repec:lan:wpaper:3171 is not listed on IDEAS
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    14. Albanese, Andrea & Gallo, Giovanni, 2020. "Buy flexible, pay more: The role of temporary contracts on wage inequality," Labour Economics, Elsevier, vol. 64(C).
    15. Didier Fouarge & Andries Grip & Wendy Smits & Robert Vries, 2012. "Flexible Contracts and Human Capital Investments," De Economist, Springer, vol. 160(2), pages 177-195, June.
    16. Duncan McVicar & Mark Wooden & Felix Leung & Ning Li, 2016. "Work-Related Training and the Probability of Transitioning from Non-Permanent to Permanent Employment," British Journal of Industrial Relations, London School of Economics, vol. 54(3), pages 623-646, September.
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    18. Sami Ullah & Zilakat K. Malik, 2020. "Analysis of the Determinants of Participation, Strengths and Weaknesses of Vocational Trainings of Federally Administered Tribal Area's Development Authority," International Journal of Economics and Financial Issues, Econjournals, vol. 10(3), pages 149-157.
    19. Pawel Mikolajczak, 2021. "What affects employment by NGOs? Counteraction to precarious employment in the Polish non-profit sector in the perspective of COVID-19 pandemic crises," Oeconomia Copernicana, Institute of Economic Research, vol. 12(3), pages 761-788, September.
    20. Inga Laß, 2020. "The Effects of Non-standard Employment on the Transition to Parenthood Within Couples: A Comparison of Germany and Australia," European Journal of Population, Springer;European Association for Population Studies, vol. 36(5), pages 843-874, November.
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