The impact of firm-provided training on productivity, wages, and transition to regular employment for workers in flexible arrangements

• I examined the incidence and impact of training for Japanese non-regular workers.
• Full-time non-regular workers are found to receive a higher density of training.
• Training participation is shown to improve job skills and productivity.
• Training for non-regular workers does not appear to impact wage growth.
• Training will make the transition to regular employment in the current occupation.

This paper examines the incidence and density of firm-provided training for workers in flexible work arrangements – i.e., non-regular employees who are working part-time or with fixed-term employment contracts – and analyzes the effect of this training on skills, productivity, and wage growth, using a unique survey of Japanese workers. Among non-regular employees, those who work on a full-time basis are found to receive a higher density of both on-the-job training (OJT) and off-the-job training (Off-JT). Participation in firm-provided training is shown to improve job skills and productivity, but does not appear to impact the wage growth of non-regular workers. However, training participation is shown to make the transition from non-regular to regular employment in the current occupation more likely, enhancing the probability of future wage increases.