Labor Outcomes After Employer-Provided Training: Evidence from the Understanding Society Survey

Abstract

A simple two-period model is developed to show that employer-provided training might increase workers' wages and incentives to work more paid and unpaid hours. These predictions are then tested using the United Kingdom Understanding Society Survey data. The empirical analysis suggests that individuals with at least one employer-provided training incident work more paid and unpaid overtime compared with individuals without employer-provided training. Training has significant positive and permanent effects on wages and the odds of workers being in a managerial role after training. Additionally, those with employer-provided training have higher odds of job satisfaction. The unpaid working hours and job satisfaction effects of job training are not long-lasting.