Persistence in work-related training: evidence from the BHPS, 1991-1998 [Draft: March 2008: Do not quote without the authors’ permission]

Abstract

In this paper we investigate the role of workers‘ training history in determining current training incidence. The analysis is conducted on an unbalanced sample comprising information on approximately 5000 employees from the first seven waves of the BHPS. Our methodology utilizes a two-step dynamic probit model developed by Orme (2001) which allows for unobserved heterogeneity and formal modelling of initial conditions. The results suggest that prior training experience is a significant determinant of a worker‘s participation in a current training episode comparable with other formal educational qualifications. State dependence in the model accounts for 53% of the probability of training the current period, conditional on having experienced some form of work-related training in the previous period. For women, however, the corresponding figure is lower at approximately 38% suggesting substantially greater state dependence among male workers.