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Skills, Workforce Characteristics and Firm-Level Productivity: Evidence from the Matched ABI/Employer Skills Survey

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  • Galindo-Rueda, Fernando

    ()
    (Office of National Statistics)

  • Haskel, Jonathan

    ()
    (Imperial College London)

Abstract

We construct firm-level data set with matched productivity and qualification data by linking the Annual Business Inquiry and Employer Skills Survey for England. We first examine the effect of workplace skills and other characteristics such as part-time status and gender on both productivity and wages in English firms. We also investigate how productivity-implied returns to worker characteristics compare with wage-implied returns, therefore providing information on how rents are distributed between employers and employees. We find that firms with a higher share of college-educated, full-time and male workers also tend to be more productive, with considerable variations across sectors. The only robust difference in implied returns follows from part-timers, who tend to work for firms that pay too low wages for the observed productivity differences. Second, we study the effect of local skills on productivity controlling for skills at the firm. We find a positive and robust association, which is consistent with positive human capital externalities.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1542.

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Length: 43 pages
Date of creation: Mar 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1542

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Keywords: productivity; wages; skills; workforce characteristics; spillovers;

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References

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  1. Acemoglu, Daron, 1996. "Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1459, C.E.P.R. Discussion Papers.
  2. Maarten Goos & Alan Manning, 2003. "Lousy and lovely jobs: the rising polarization of work in Britain," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 20002, London School of Economics and Political Science, LSE Library.
  3. Maarten Goos & Alan Manning, 2003. "Lousy and Lovely Jobs: the Rising Polarization of Work in Britain," CEP Discussion Papers dp0604, Centre for Economic Performance, LSE.
  4. Enrico Moretti, 2002. "Human Capital Spillovers in Manufacturing: Evidence from Plant-Level Production Functions," NBER Working Papers 9316, National Bureau of Economic Research, Inc.
  5. Hellerstein, Judith K & Neumark, David & Troske, Kenneth R, 1999. "Wages, Productivity, and Worker Characteristics: Evidence from Plant-Level Production Functions and Wage Equations," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 17(3), pages 409-46, July.
  6. Haskel, Jonathan & Hawkes, Denise & Pereira, Sonia, 2005. "Skills, human capital and the plant productivity gap: UK evidence from matched plant, worker and workforce data," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5334, C.E.P.R. Discussion Papers.
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Cited by:
  1. Luis Angeles & Kyriakos C. Neanidis, 2006. "Aid Effectiveness: The Role of the Local Elite," The School of Economics Discussion Paper Series, Economics, The University of Manchester 0633, Economics, The University of Manchester.
  2. Lara LEBEDINSKI & Vincent VANDENBERGHE, 2013. "Assessing education's contribution to productivity using firm-level evidence," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2013017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  3. Ann-Kathrine Ejsing & Ulrich Kaiser & Hans Christian Kongsted & Keld Laursen, 2013. " The Role of University Scientist Mobility for Industrial Innovation," Working Papers 336, University of Zurich, Department of Business Administration (IBW).
  4. Thomas Zwick, 2007. "Apprenticeship Training in Germany? Investment or Productivity Driven?," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 07-023, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. repec:iab:iabzaf:v:40:i:2/3:p:193-204 is not listed on IDEAS
  6. Metaxas, Theodore & Kallioras, Dimitris, 2013. "Small and medium-sized firms' competitiveness and territorial characteristics/assets: The cases of Bari, Varna and Thessaloniki," MPRA Paper 52446, University Library of Munich, Germany.
  7. R Harris & Q Li & C Robinson, . "The Productivity Impact of Skills in English Manufacturing, 2001: Evidence from Plant-Level Matched Data," Working Papers, Business School - Economics, University of Glasgow 2006_16, Business School - Economics, University of Glasgow.
  8. Ejsing, Ann-Kathrine & Kaiser, Ulrich & Kongsted, Hans Christian, 2011. "Unraveling the Role of Public Researcher Mobility for Industrial Innovation," IZA Discussion Papers 5691, Institute for the Study of Labor (IZA).
  9. METAXAS, Theodore, 2011. "Territorial Assets And Firms’ Competitiveness In Southern Europe: Industrial Vs Commercial Firms Using Exploratory Factor Analysis," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, Euro-American Association of Economic Development, vol. 11(1).

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