The impact of training on productivity and wages: firm level evidence

© 2015 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology. This paper uses firm-level panel data of on-the-job training to estimate its impact on productivity and wages. To this end, we apply and extend the control function approach for estimating production functions, which allows us to correct for the endogeneity of input factors and training. We find that the productivity premium of a trained worker is substantially higher compared to the wage premium. Our results are consistent with recent theories that explain work-related training by imperfect competition in the labor market.

Jaar van publicatie:2015

BOF-keylabel:ja

IOF-keylabel:ja

BOF-publication weight:10

CSS-citation score:3

Auteurs:International

Authors from:Higher Education

Toegankelijkheid:Open