Working Paper: CEPR ID: DP7473
Authors: Jozef Konings; Stijn Vanormelingen
Abstract: 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: Human Capital; Production Functions; Training
JEL Codes: J24; J31; L22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Training (M53) | Productivity (O49) |
| Training (M53) | Wages (J31) |
| Productivity (O49) | Wages (J31) |
| Training (M53) | Productivity (Male) (J24) |
| Training (M53) | Productivity (Female) (J21) |
| Training (M53) | Wages (Female) (J31) |
| Training (M53) | Wages (Male) (J31) |