Skills, human capital and the plant productivity gap: UK evidence from matched plant, worker and workforce data

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Skills, human capital and the plant productivity gap: UK evidence from matched plant, worker and workforce data

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Haskel, Jonathan
Hawkes, Denise
Pereira, Sonia

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Abstract

Using two matched plant level skills and productivity datasets for UK manufacturing we document that (i) more productive firms hire more skilled workers: in 2000, plants at the top decile of the TFP distribution (controlling for their four-digit industry) hired workers with, on average, around 1/3rd of a year of additional schooling compared to firms in the bottom decile and (ii) in an accounting sense the skills gap between the firms in the top and bottom deciles of the TFP distribution accounts for 3 to 10% of the TFP gap depending on the specification used.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5334.

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Date of creation: Nov 2005
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Handle: RePEc:cpr:ceprdp:5334

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Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
L6 - Industrial Organization - - Industry Studies: Manufacturing

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-12-09 (All new papers)
NEP-BEC-2005-12-09 (Business Economics)
NEP-EFF-2005-12-09 (Efficiency & Productivity)
NEP-HRM-2005-12-09 (Human Capital & Human Resource Management)
NEP-INO-2005-12-09 (Innovation)

References listed on IDEAS
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Susana Iranzo & Fabiano Schivardi & Elisa Tosetti, 2006. "Skill dispersion and firm productivity: an analysis with employer-employee matched data," Working Paper CRENoS 200617, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
Other versions:
- Susanna Iranzo & Fabiano Schivardi & Elisa Tosetti, 2006. "Skill dispersion and firm productivity; an analysis with employer-employee matched data," Temi di discussione (Economic working papers) 577, Bank of Italy, Economic Research Department. [Downloadable!]
- Iranzo, Susana & Schivardi, Fabiano & Tosetti, Elisa, 2006. "Skill Dispersion and Firm Productivity: An Analysis with Employer-Employee Matched Data," CEPR Discussion Papers 5539, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)

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