Working Paper: CEPR ID: DP10246
Authors: Antonio Cabrales; Juan J. Dolado; Ricardo Mora
Abstract: Using the Spanish micro data from the Programme for the International Assessment of Adult Competencies (PIAAC), we first document how the excessive gap in employment protection between indefinite and temporary workers leads to large differentials in on-the-job training (OTJ) against the latter. Next, we find that that the lower specific training received by temporary workers is correlated with lower literacy and numeracy scores achieved in the PIAAC study. Finally, we provide further PIAAC cross-country evidence showing that OJT gaps are quite lower in those European labour markets where dualism is less entrenched than in those where it is more extended.
Keywords: Cognitive Skills; Dual Labour Market; On-the-Job Training; Severance Pay
JEL Codes: C14; C52; D24; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| temporary contract (M55) | likelihood of receiving OJT (J24) |
| lower OJT (M53) | lower literacy and numeracy scores (I24) |
| temporary contract (M55) | lower literacy and numeracy scores (I24) |
| contract type (K12) | training outcomes (M53) |
| contract type (K12) | cognitive skill development (I25) |