You Give Them Skills They Will Give Back Hours : The Overtime Hours Impact of the Employer-Provided Training

This study first develops a simple two-period model of employer-provided training to show that such training increases the worker’s incentives to work for more hours. The study then tests this prediction using United Kingdom Understanding Society survey data. The empirical analysis suggests that individuals with at least one employer-provided training incidence work for more paid and unpaid overtime hours as compared with individuals with no employer-provided training. The unpaid working hours effects of training are short-term only. The positive effects of training on unpaid overtime hours are explained by arguing that workers get positive utility not only from wage earning but from increases in their productivity also. Additionally, training has significantly positive and permanent effects on the odds of workers having managerial duties after training. The study also contributes to the literature on why the employer should finance completely portable training