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Work-Related Training and the Probability of Transitioning from Non-Permanent to Permanent Employment

Duncan McVicar, Mark Wooden, Felix Leung and Ning Li

British Journal of Industrial Relations, 2016, vol. 54, issue 3, 623-646

Abstract: It is widely believed that work-related training increases a worker's probability of moving up the job-quality ladder. This is usually couched in terms of effects on wages, but it has also been argued that training increases the probability of moving from non-permanent forms of employment to more permanent employment. This hypothesis is tested using nationally representative panel data for Australia, a country where the incidence of non-permanent employment, and especially casual employment, is high by international standards. While a positive association between participation in work-related training and the subsequent probability of moving from either casual or fixed-term contract employment to permanent employment is observed among men, this is shown to be driven not by a causal impact of training on transitions but by differences between those who do and do not receive training, that is selection bias.

Date: 2016
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