Formal on-the-job training: A gender-typed experience and wage-related advantage?

Formal on-the-job training (FOJT) can have a positive impact on wages and on promotion opportunities. According to theory and earlier research, a two-step model of gender inequality in FOJT is predicted. First, women are less likely than men to take part in FOJT and, second, once women do get the more remunerative training - such as general training and training that increases promotion opportunities - they are not rewarded for their new skills to the same extent as men are. Pooled cross-sectional data from the Swedish Survey of Living Conditions in the mid-1990s were used. Logistic and OLS regression models were estimated to address the hypotheses. Results show that women are significantly less likely than men to take part in FOJT. Among those who do receive training, women are more likely to take part in industry-specific training, whereas men are more likely to participate in general training and training that increases promotion opportunities. The two latter forms of training significantly raise a man's annual earnings but not a woman's. Hence, the predicted model is supported and it is argued that this gender inequality is partly due to employers' discriminatory practices.