Advanced Search
MyIDEAS: Login

Productivity, Wages, and the Returns to Firm-Provided Training: Fair Share Capitalism?

Contents:

Author Info

  • Ana Sofia Lopes

    ()
    (Departamento de Gestão e Economia, ESTG/Instituto Politécnico de Leiria, Portugal, and GEMF)

  • Paulino Teixeira

    ()
    (GEMF/Faculdade de Economia, Universidade de Coimbra, Portugal)

Abstract

In this study, we develop an alternative modelling that examines a) the determinants of firm productivity and wages and b) the internal rate of return (IRR) to firm training for both firms and workers. Using a six-year linked employer-employee dataset, our estimates indicate that an additional hour of training per worker results in an increase of 0.12% in productivity and 0.04% in wages, or an increase of 0.16% and 0.08%, respectively, if one uses firm training as a stock variable. We then find that 82% of the gains in productivity are captured by firms and 18% by workers. Given the training costs, we finally obtain an IRR of 13% for firms and 33% for workers at sample means. Firms are heterogeneous, and we do find that dispersion in the rates of return across firms is high.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://gemf.fe.uc.pt/workingpapers/pdf/2010/gemf_2010-05.pdf
File Function: First Version
Download Restriction: no

File URL: http://gemf.fe.uc.pt/workingpapers/pdf/2010/gemf_2010-05v2.pdf
File Function: Revised Version
Download Restriction: no

Bibliographic Info

Paper provided by GEMF - Faculdade de Economia, Universidade de Coimbra in its series GEMF Working Papers with number 2010-05.

as in new window
Length: 37 pages
Date of creation: Apr 2010
Date of revision: Jul 2012
Publication status: Published in International Journal of Manpower 34(7): 776-793, 2013.
Handle: RePEc:gmf:wpaper:2010-05

Contact details of provider:
Postal: Av. Dias da Silva, 165, 3004-512 COIMBRA
Phone: + 351 239 790 500
Fax: +351 239 403511
Email:
Web page: http://www.uc.pt/en/feuc/gemf/
More information through EDIRC

Related research

Keywords: Firm-Provided Training; Internal Rate of Return; Human Capital; Productivity; Wages.;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Lorraine Dearden & Howard Reed & John Van Reenen, 2005. "The impact of training on productivity and wages : evidence from British panel data," Economic History Working Papers 779, London School of Economics and Political Science, Department of Economic History.
  2. Ana Sofia Lopes & Paulino Teixeira, 2009. "Unobserved Worker Ability, Firm Heterogeneity, and the Returns to Schooling and Training," GEMF Working Papers 2009-03, GEMF - Faculdade de Economia, Universidade de Coimbra.
  3. Almeida, Rita & Carneiro, Pedro, 2009. "The return to firm investments in human capital," Labour Economics, Elsevier, vol. 16(1), pages 97-106, January.
  4. Budría, Santiago & Pereira, Pedro T., 2004. "On the Returns to Training in Portugal," IZA Discussion Papers 1429, Institute for the Study of Labor (IZA).
  5. 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, 09.
  6. Harley Frazis & Mark A. Loewenstein, 2005. "Reexamining the Returns to Training: Functional Form, Magnitude, and Interpretation," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Benoit Dostie & Pierre Thomas Léger, 2011. "Firm-Sponsored Classroom Training: Is It Worth It For Older Workers?," Cahiers de recherche 11-06, HEC Montréal, Institut d'économie appliquée.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:gmf:wpaper:2010-05. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sara Santos).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.