Overview

Abstract (English)

Using data extracted from the Adult Education and Training Survey (AETS) and the Workplace and Employee Survey (WES) of Statistics Canada, this paper empirically investigates employee attributes and employer characteristics that are associated with the participation of employer-sponsored training in Canada. We add to the literature in a number of ways. First, we employ data for a 12-year period (1991 to 2002), offering a trend analysis and assessing the changing impacts of explanatory variables, compared to analysis of training participation in one particular point in time usually seen in the literature. Secondly, we use two data sources, one household survey and one linked employer-employee survey, compared to the use of one data source commonly found in the literature. Our results, to a large extent, complement each other where applicable. Thirdly and most importantly, the literature rarely examines the impacts of employer characteristics and worker attributes jointly. That is exactly what we attempt to achieve in this paper. Our findings not only confirm some of the hypotheses raised in the theory of human capital but also provide some important policy implications. Market forces such as increasing competition, research and development, technological innovation and the resultant skill requirements provide external driving forces for employer-sponsored training. Firm management practices such as the amount and availability of training are important internal forces affecting employer-sponsored training. But existing market forces and management practices appear to still leave some imbalances in employer-sponsored training. More specifically, some industries, small firms, and blue-collar workers all have lower training participation rates. Hence in these areas, public policies may play an important role in encouraging and promoting training.

Abstract (French)

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