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

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  • Gérard Ballot
  • Fathi Fakhfakh
  • Erol Taymaz

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

  • Gérard Ballot & Fathi Fakhfakh & Erol Taymaz, 2006. "Who Benefits from Training and R&D, the Firm or the Workers?," British Journal of Industrial Relations, London School of Economics, vol. 44(3), pages 473-495, September.
    • Handle: RePEc:bla:brjirl:v:44:y:2006:i:3:p:473-495
    DOI: 10.1111/j.1467-8543.2006.00509.x
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    References listed on IDEAS

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