The gap in employer-paid job training between non-Hispanic and Hispanic white workers

Abstract

ABSTRACT The study assesses the size and nature of the gap in incidence of employer-paid job training between Hispanic and non-Hispanic white workers. Using data on employer-paid training from the Survey of Income and Program Participation, Oaxaca/Blinder decompositions are estimated and analysed. The study finds that non-Hispanic white workers are more likely to engage in training than their Hispanic white counterparts, and that about half the difference in training incidence can be explained by average differences in educational attainment between the two groups. Besides educational attainment, being foreign born is another strong predictor of low training probabilities. The inability to explain a substantial part of the training gap suggests an economy-wide problem with human capital discrimination that leads to less job training among Hispanic whites compared to their non-Hispanic white counterparts. Policy efforts to increase formal education and reduce discriminatory behaviour both are consistent with the empirical findings.