The incidence and intensity of employer funded training: Australian evidence on the impact of flexible work

The interaction between the growth of flexible forms of employment and employer funded training is important for understanding labour market performance. In particular, the idea of a trade-off has been advanced to describe potential market failures in the employment of flexible workers. This study finds that evidence of a trade-off is apparent in both the incidence and intensity of employer funded training. Flexible workers receive training that is 50-80% less intense than the workforce average. Casual workers - especially males - suffer more acutely from the trade-off. This suggests that flexible production externalities may seriously reduce human capital formation in the workforce.