Who Benefits from Training and R&D, the Firm or the Workers?

23 Pages Posted: 13 Aug 2006

See all articles by Gérard Ballot

Gérard Ballot

University of Paris I Pantheon-Assas - ERMES

Fathi Fakhfakh

Université Paris II - Panthéon-Assas

Erol Taymaz

Middle East Technical University - Department of Economics

Abstract

The present paper offers a novel study of the effects of intangible assets on wages and productivity. Training, R&D and physical capital are all taken into account, and their joint effects are examined. We use panels of firms in order to control for unobserved fixed effects and the potential endogeneity of training and R&D, using data for France and Sweden. The estimation of productivity and wage equations allows us to show how the benefits of investment in physical capital, training and R&D are shared between the firm and the workers. We found that firms indeed obtain the largest part of the returns to their investments, but their share is relatively lower for intangible assets (R&D and training) than for physical capital.

Suggested Citation

Ballot, Gérard and Fakhfakh, Fathi and Taymaz, Erol, Who Benefits from Training and R&D, the Firm or the Workers?. British Journal of Industrial Relations, Vol. 44, No. 3, pp. 473-495, September 2006. Available at SSRN: https://ssrn.com/abstract=923916 or http://dx.doi.org/10.1111/j.1467-8543.2006.00509.x

Gérard Ballot

University of Paris I Pantheon-Assas - ERMES

12 Place du Panthéon
Paris, Cedex 5, 75005
France

Fathi Fakhfakh

Université Paris II - Panthéon-Assas ( email )

France

Erol Taymaz (Contact Author)

Middle East Technical University - Department of Economics ( email )

Ankara, 06531
Turkey
+90312210 3034 (Phone)

HOME PAGE: http://www.metu.edu.tr/~etaymaz

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