Estimation of training costs for the Norwegian Labour Cost Survey (LCS)

Abstract

The traditional Norwegian Labour Cost Survey (LCS) has been replaced by alternative data sources in 2016. Most of the key costs are easily available and of a high quality through Norway’s extensive registers.

Indirect labour costs associated with training are not however covered by registers and therefore need to be estimated. We investigated alternative data sources for estimating these costs, and develop an estimation based on data from the Continued Vocational Training Survey. We matched the populations and definitions to ensure comparability. Three estimation methods were tested for estimating costs in 2016: a rate model, regression and nearest neighbour imputation. The rate model provided the best estimates and produced totals that were comparable with previous LCS results. Rate models were used to predict training costs per employee and register data on the number of employees was used to calculate total costs. The estimated total indirect labour costs for training in 2016 were approximately NOK 10 billion (excluding apprentices).