Thomas Ericson: School of Economics and Commercial Law at Göteborg University, Department of Economics, Postal: Box 640, SE-405 30 Göteborg, Sweden
Abstract: This paper investigates the relation between workers’ on-the-job training activities and the degree of wage compression in their occupation. With respect to general training – as opposed to firm-specific training – human capital theory implies that the worker initiates and finances the training when there is a negative relationship. A positive relation between general training and wage compression, on the other hand, shows that the employer pays for and benefits from training. The empirical results show that the intensity of general training in Sweden decreases with wage compression. The paper also reveals differences between men and women.
39 pages, November 23, 2004
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