Firm Training and Labour Demand in Belgium :Does Productivity Dominate Cost Effects ?
AbstractThis paper models and estimates the impact of quantitative and qualitative training financed by the firm on labour demand in Belgium. It assumes profit maximising firms producing under short run monopolistic competition conditions, where training can increase labour demand through its positive net effect on labour productivity or decrease it through higher direct labour costs and wages. The estimation of our model on a panel of 17,812 firms over the period 1999- 2007 allowing to control for the potential simultaneity between training and labour demand and for time-invariant workplace characteristics reveals a small positive impact of training variables on labour demand. This suggests that productivity effects could dominate cost effects to a small extent.
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Bibliographic InfoArticle provided by ULB -- Universite Libre de Bruxelles in its journal Brussels economic review.
Volume (Year): 54 (2011)
Issue (Month): 4 ()
Training; Labour Demand; Labour Productivity; Wage Determination; Panel Data;
Find related papers by JEL classification:
- M53 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Training
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
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