The selection process and benefits of job training

Continuously investing in the development of the skills of employees has become increasingly important due to the current changes in the labor market. Skills can be improved through job training. Studies have shown that training has a positive impact on productivity and organizational performance. In this study, a cross-sectional dataset from the European Working Conditions Survey in 2015 has been used. This study examines three different models. The first model tests what type of organizations offer training and to which employees. The second model examines the selection process of employees into self-financed training. Finally, the third model analyzes the influence of various determinants for organizational training benefits. Model (1) finds that organizational size and unionization have a positive effect on employer-financed training. Given organizations are unionized, size negatively affects training. Working fulltime, a worker’s highest obtained education level and his/her age are positively related to employer-financed training. Finally, women who work fulltime are equally likely to receive employer-financed training compared to men who are fulltime employed. Model (2) shows that education level positively influences the likelihood employees undergo self-financed job training. Model (3) finds that the number of days training and if training is employer- versus self-financed has a positive effect on the organizational training benefits. The (subjective) skills of employees are negatively related to the benefits meaning that under skilled employees benefit more from training compared to over skilled employees.