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Who Invests in Training if Contracts are Temporary? - Empirical Evidence for Germany Using Selection Correction

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  • Sauermann, Jan

Abstract

This study deals with the effect of fixed-term contracts on work-related training. Though previous studies found a negative effect of fixed-term contracts on the participation in training, from the theoretical point of view it is not clear whether workers with fixed-term contracts receive less or more training, compared to workers with permanent contracts. In addition to the existing strand of literature, we especially distinguish between employer- and employee-financed training in order to allow for diverging investment patterns of worker and firm. Using data from the German Socio-Economic Panel (GSOEP), we estimate a bivariate probit model to control for selection effects that may arise from unobservable factors, affecting both participation in training and holding fixed-term contracts. Finding negative effects for employer-sponsored, as well as for employee-sponsored training, leads us to conclude that workers with fixed-term contracts do not compensate for lower firm investments.

Suggested Citation

  • Sauermann, Jan, 2006. "Who Invests in Training if Contracts are Temporary? - Empirical Evidence for Germany Using Selection Correction," IWH Discussion Papers 14/2006, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:iwh-14-06
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    Cited by:

    1. Ferrari, Filippo, 2011. "Lo sviluppo delle competenze nei contesti precari [Skills development in precariousness: the dark side of flexibility?]," MPRA Paper 33284, University Library of Munich, Germany.
    2. Reinowski, Eva & Sauermann, Jan, 2008. "Hat die Befristung von Arbeitsverträgen einen Einfluss auf die Weiterbildung geringqualifiziert beschäftigter Personen?," IWH Discussion Papers 2/2008, Halle Institute for Economic Research (IWH).
    3. Hara, Hiromi, 2014. "The impact of firm-provided training on productivity, wages, and transition to regular employment for workers in flexible arrangements," Journal of the Japanese and International Economies, Elsevier, vol. 34(C), pages 336-359.
    4. Görlitz, Katja & Rzepka, Sylvi, 2014. "Does Regional Training Supply Determine Employees' Training Participation?," IZA Discussion Papers 8101, Institute of Labor Economics (IZA).
    5. Carpio, Susana & Giuliodori, David & Rucci, Graciana & Stucchi, Rodolfo, 2011. "The Effect of Temporary Contracts on Human Capital Accumulation in Chile," IDB Publications (Working Papers) 3030, Inter-American Development Bank.
    6. Christine Erhel & Iain Begg & Jorgen Mortensen, 2010. "Medium term employment challenges of the Lisbon strategy," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00616806, HAL.
    7. Susana Carpio & David Giuliodori & Graciana Rucci & Rodolfo Stucchi, 2011. "The Effect of Temporary Contracts on Human Capital Accumulation in Chile," IDB Publications (Working Papers) 35358, Inter-American Development Bank.
    8. Reinowski, Eva & Sauermann, Jan, 2008. "Hat die Befristung von Arbeitsverträgen einen Einfluss auf die berufliche Weiterbildung geringqualifiziert beschäftigter Personen? (Does temporary employment affect the work-related training of low-sk," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(4), pages 489-499.
    9. Schultz, Birgit & Wilde, Joachim, 2008. "Vergleich der Weiterbildungsaktivitäten von Arbeitslosen und Vollzeiterwerbstätigen (Comparing the training activities of unemployed and full-time employed people)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 41-52.
    10. Nguyễn, Hữu Chí. & Nguyen-Huu, Thanh Tam. & Le, Thi-Thuy-Linh., 2016. "Non-standard forms of employment in some Asian countries : a study of wages and working conditions of temporary workers," ILO Working Papers 994901213402676, International Labour Organization.
    11. Hara, Hiromi, 2019. "The impact of worker-financed training: Evidence from early- and mid-career workers in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 51(C), pages 64-75.
    12. G. Guidetti & G. Pedrini, 2015. "Systemic flexibility and human capital development: the relationship between non-standard employment and workplace training," Working Papers wp1019, Dipartimento Scienze Economiche, Universita' di Bologna.
    13. Poulissen, Davey & de Grip, Andries & Fouarge, Didier & Künn-Nelen, Annemarie, 2021. "Employers' Willingness to Invest in the Training of Temporary Workers: A Discrete Choice Experiment," IZA Discussion Papers 14395, Institute of Labor Economics (IZA).
    14. Baumann, Alexendra & Wohlrabe, Klaus, 2019. "Publikationen von Wirtschaftsforschungsinstituten im deutschsprachigen Raum - Eine bibliometrische Analyse [Publications of Economic Research Insitutes in the German Speaking Area - A bibliometric ," MPRA Paper 92240, University Library of Munich, Germany.
    15. Schultz, Birgit & Wilde, Joachim, 2008. "Vergleich der Weiterbildungsaktivitäten von Arbeitslosen und Vollzeiterwerbstätigen (Comparing the training activities of unemployed and full-time employed people)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 41-52.
    16. Schultz, Birgit & Wilde, Joachim, 2008. "Vergleich der Weiterbildungsaktivitäten von Arbeitslosen und Vollzeiterwerbstätigen (Comparing the training activities of unemployed and full-time employed people)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 41-52.
    17. Katja Görlitz & Sylvi Rzepka, 2017. "Regional training supply and employees’ training participation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 281-296, July.
    18. Christine Erhel & Iain Begg & Jorgen Mortensen, 2010. "Medium term employment challenges of the Lisbon strategy," Post-Print hal-00616806, HAL.
    19. Hiromi Hara, 2016. "Determinants and Effects of Worker-Initiated Training: Learning about Required Job Skills at the Workplace," Working Papers e106, Tokyo Center for Economic Research.

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    More about this item

    Keywords

    berufliche Weiterbildung; befristete Beschäftigungsverhältnisse; bivariates Probit-Modell; training; fixed-term contracts; bivariate probit model;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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