The Impact of Training on Productivity and Wages: Firm Level Evidence
Catholic University of Leuven (KUL) - LICOS - Centrum voor Transitie-economie; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)
Hogeschool-Universiteit Brussel (HUBrussel); KU Leuven - Centre for Institutions and Economic Performance (LICOS)
CEPR Discussion Paper No. DP7473
This paper uses firm level panel data of firm provided training to estimate its impact on productivity and wages. To this end the strategy proposed by Ackerberg, Caves and Frazer (2006) for estimating production functions to control for the endogeneity of input factors and training is applied. The productivity premium for a trained worker is estimated at 23%, while the wage premium of training is estimated at 12%. Our results give support to recent theories that explain work related training by imperfect competition in the labor market.
Number of Pages in PDF File: 49
Keywords: Human Capital, Production Functions, Training
JEL Classification: J24, J31, L22working papers series
Date posted: October 7, 2009
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