Abstracts
Summary
In this article, we compare the characteristics of workplace-provided training and its effects on wages in Quebec with other Canadian provinces. It is widely argued that training tends to be under-provided by employers. The institutions of training provision vary across Canada. Quebec is most distinct. With Law 90, it attempted to address what was seen as a distinctly severe problem of under-supply; it required that firms invest a specified proportion of their sales in training or turn over the difference between what they spent and the specified proportion to the government. We use data from the Workplace and Employee Survey to explore the possible effects of this measure. There are differences between Quebec and the other provinces in the incidence of on-the-job and formal training, and in the relations between training and the wage rate. In Quebec, the incidence of on-the-job training is distinctly low and the use of external training providers distinctly high. We suggest that these outcomes are encouraged by Law 90, which encourages employers to use readily documentable forms of training. We also find that the association between on-the-job training and the wage rate is much stronger in Quebec than in the comparator provinces. We argue that this is probably because, being less abundantly provided, on-the-job training is likely to be provided to employees who, on average, are more talented than their counterparts in the rest of Canada. We set our discussion of the possible effects of Law 90 in the context of a broader consideration of the relation between institutions and training choices and outcomes, including international comparison.
Keywords:
- training,
- Quebec,
- training levy
Résumé
Cet article vise à comparer les caractéristiques de la formation offerte dans les entreprises et leurs impacts sur les salaires des employés au Québec et dans les autres provinces canadiennes. Au Canada, comme dans de nombreux pays industrialisés, l’une des préoccupations majeures dans le dossier de la formation continue est le sous-investissement des entreprises. Le contexte institutionnel canadien de la formation en entreprise diffère d’une province à l’autre et le Québec se distingue, entre autres, par l’adoption d’une loi en 1995, appelée « loi 90 », exigeant de la part des entreprises assujetties d’investir annuellement dans le développement de la formation de leur main-d’oeuvre. Dans une perspective comparative, nous examinons les effets potentiels de cette mesure obligatoire de financement en formation. Nos analyses sont fondées sur un ensemble de micro-données longitudinales sur les milieux de travail canadiens et leurs employés. Des différences provinciales sont observées dans la formation structurée et en cours d’emploi, ainsi que sur l’impact de l’investissement sur les salaires. Au Québec, nous observons une incidence plus faible de la formation en cours d’emploi pour laquelle nous pensons que les dépenses sont plus difficilement justifiables dans le cadre de la loi. Les résultats indiquent également une tendance plus forte au Québec à recourir à des formateurs externes qu’ailleurs au Canada et ils mettent aussi en évidence des retombées plus élevées de la formation en cours d’emploi sur les salaires dans cette province, tandis que les effets engendrés par la formation structurée sont de tailles similaires à travers les provinces et les régions. Nous discutons des résultats en regard des différences provinciales et de leur environnement institutionnel, ainsi que des expériences internationales de politiques gouvernementales en matière de formation continue. Nous posons certaines hypothèses quant à l’impact plus élevé de la formation en cours d’emploi sur les salaires observé au Québec comparativement aux autres provinces.
Mots-clés:
- formation,
- Québec,
- taxe sur la formation
Resumen
Este artículo pretende comparar las características de la formación dispensada en las empresas y sus impactos sobre los salarios de empleados del Quebec y en las otras provincias canadienses. En Canadá, como en números países industrializados, una de las preocupaciones mayores en el folio de la formación continua es la sub-inversión de las empresas. El contexto institucional canadiense de la formación en empresa difiere de una provincia a otra y el Quebec se distingue, entre otros, por la adopción de una ley en 1995, llamada «ley 90», que exige a las empresas sujetas a dicha ley de invertir anualmente en el desarrollo de la formación de su respectiva mano de obra. En una perspectiva comparativa, se examina los efectos potenciales de esta medida obligatoria de financiamiento de la formación. Nuestros análisis son basados en un conjunto de micro-datos longitudinales sobre los lugares de trabajo canadienses y sus empleados. Se observan diferencias provinciales en la formación estructurada y en la formación durante el empleo, así como sobre el impacto de la inversión sobre los salarios. En Quebec, se observa una incidencia más débil de la formación durante el empleo por la cual nosotros pensamos que los gastos son más difícilmente justificables en el marco de la ley. Los resultados indican también una tendencia más fuerte en Quebec a recurrir a formadores externos comparativamente al resto de Canadá y ponen en evidencia los impactos más elevados de la formación durante el empleo sobre los salarios de esta provincia, mientras que los efectos engendrados por la formación estructurada son de talla similar a través las provincias y las regiones. Se discuten los resultados en relación con las diferencias provinciales y su entorno institucional, e igualmente con relación a las experiencias internacionales de políticas gubernamentales en materia de formación continua. Se plantean ciertas hipótesis en cuanto al impacto más elevado de la formación durante el empleo sobre los salarios, tal que observado en Quebec comparativamente a las otras provincias.
Palabras claves:
- formación,
- Quebec,
- impuesto sobre la formación
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Appendices
Acknowledgements
The authors would like to thanks the Programme de subvention à la recherche appliquée (PSRA) sur les conditions d’application de la Loi favorisant le développement et la reconnaissance des compétences de la main-d’oeuvre and the Commission des partenaires du marché du travail du Québec.
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