Do Computers Call for Training? Firm-Level Evidence On Complementarities between ICT and Human Capital Investments

46 Pages Posted: 14 Jul 2003

See all articles by Thomas Hempell

Thomas Hempell

Center for European Economic Research (ZEW)

Date Written: 2003

Abstract

This paper explores whether investments in information and communication technologies (ICT) and firm-sponsored training programmes are complementary. Three approaches are applied to panel data from German service companies for the time period 1994-98. Results for a system of interrelated factor demands indicate that training complements ICT but not other capital goods. SYS-GMM estimates of production functions reveal that ICT capital is most productive if complemented by training measures in skill-intensive firms. Comparing the impacts on productivity and wage costs shows that ICT raise the profitability of training high-skilled employees.

Keywords: Productivity, Training, Information and Communication Technologies, Complementarities, Services, Panel Data

JEL Classification: C23, D24, J24, J31

Suggested Citation

Hempell, Thomas, Do Computers Call for Training? Firm-Level Evidence On Complementarities between ICT and Human Capital Investments (2003). ZEW Discussion Paper No. 03-20. Available at SSRN: https://ssrn.com/abstract=416440 or http://dx.doi.org/10.2139/ssrn.416440

Thomas Hempell (Contact Author)

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
248
Abstract Views
1,845
rank
132,393
PlumX Metrics