Employee Training in Canada

Abstract

In this paper we first analyze the determinants of training using data from the 2003 International Adult Literacy and Skills Survey (IALSS). We find that education plays a key role in the receipt of all forms of training except in the case of employer-sponsored training. We also find substantial differences across demographic groups in the relationship between literacy skills and training. In the second part of the paper we merge the 1994 IALS to the 2003 IALSS and perform an analysis of the impact of the Quebec policy introduced in 1995 by which employers are required to devote at least 1% of the payroll to training activities. In the case of males we find no effect of the policy on the incidence of employer-sponsored training. On the other hand, Quebec females did experience a very large relative increase in training incidence between 1994 and 2003. However, the magnitude of the estimates is much too large to be plausibly caused by the policy given its modest scale. We show evidence of a significant relative increase in female employment rates in Quebec that could explain part -but probably not all-of the large increase in female employer-sponsored training.Literacy, Employer Training, Payroll Tax