The impact of work-related training on employee earnings: evidence from Great Britain

Abstract

Using data from the British Household Panel Survey for the years 1998-2005, this study
estimates the impact of work-related training on earnings levels. Different measures for
general and specific training are constructed from available information. The analysis
diverges from the standard fixed effects framework for earnings determination
modelling and presents evidence in support of the predictions of the standard human
capital theory with regards to training sponsoring using a random effects formulation
for the earnings equation suggested by Nijman and Verbeek (1992) for controlling for
attrition bias in unbalanced panels.