Employer-Provided Training and Knowledge Spillovers: Evidence from Italian Local Labour Markets

19 Pages Posted: 8 Apr 2009 Last revised: 15 Apr 2015

See all articles by Giuseppe Croce

Giuseppe Croce

University of Rome I

Emanuela Ghignoni

University of Rome La Sapienza

Date Written: April 6, 2009

Abstract

Following suggestions from theoretical and empirical literature on agglomeration and on social returns to education which emphasise the contribution of local knowledge spillovers to productivity and wage growth, this paper aims at uncovering the relationship between local human capital and training. Furthermore, we check the effects of other variables measuring distinctive features of local labour markets, like the degree of specialization, average firms' size, intensity of job turnover, economic density, employment in R&D activities and some other control variables.

Our key-results are consistent with the prediction that training should be more frequent in areas where the aggregate educational level is higher. Moreover, interaction between local and individual human capital is positive and significant for those with an upper secondary educational attainment. These results have proved to be robust since they are not altered when different definitions of local human capital are adopted or different sub-samples are considered (with the exception of female workers). We coped also with the problem of omitted variables and spatial sorting, that could bias econometric results, by means of a two-step strategy based on instrumental variables.

Keywords: training, knowledge spillovers, local labour markets

JEL Classification: J24, O15, O18, R23

Suggested Citation

Croce, Giuseppe and Ghignoni, Emanuela, Employer-Provided Training and Knowledge Spillovers: Evidence from Italian Local Labour Markets (April 6, 2009). Available at SSRN: https://ssrn.com/abstract=1373886 or http://dx.doi.org/10.2139/ssrn.1373886

Giuseppe Croce (Contact Author)

University of Rome I ( email )

Piazzale Aldo Moro 5
Roma, Rome 00185
Italy

Emanuela Ghignoni

University of Rome La Sapienza ( email )

Piazzale Aldo Moro 5
Roma, Rome 00185
Italy

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