The Impact of Training on Productivity and Wages: Firm-Level Evidence
By Jozef Konings, Stijn Vanormelingen. Review of Economics and Statistics, 2015
306 citations recorded by the source corpus.
Abstract 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.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/c36139ee3434cad4cfc9c1a4ac6df2573d92b939
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In Economics and Econometrics
Citations in the corpus
- The effect of training on productivity: The transfer of on-the-job training from the perspective of economics (2013, unknown): “…impossible to find a more direct measure of productivity that is comparable across industries, studies that include more sectors of industry use the value added or sales of firms as a measure of firm productivity (Black & Lynch, 2001; Dear-den et al., 2006; Zwick, 2006; Konings & Vanormelingen, 2010).”
- Do environmental, social, and governance activities improve corporate financial performance? (2018, result): “Furthermore, many researchers have investigated the effect of on-the-job-training on productivity and have found a positive relationship between training programs and employee productivity (De Grip and Sauermann, 2013; Konings and Vanormelingen, 2015), which is also supported by our results.”