The Impact of Training on Productivity and Wages: Firm Level Evidence
LICOS Discussion Paper No. 244/2009
48 Pages Posted: 18 Oct 2009
Date Written: August 2009
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.
Keywords: Training, production functions, human capital
JEL Classification: J24, J31, L22
Suggested Citation: Suggested Citation