Melbourne Institute of Applied Economic and Social Research - Research Publications

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    Work-Related Training and the Probability of Transitioning from Non-Permanent to Permanent Employment
    Mcvicar, D ; Wooden, M ; Leung, F ; Li, N (Wiley, 2016-01-01)
    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.