Human Capital Spillovers and Economic Performance in the Workplace in 2004: Some British Evidence
AbstractThis paper considers the impact of education and training on both individual and co-worker pay and establishment performance using the matched employer-employee data in WERS 2004, the panel dataset 1998-2004 and the new Financial Performance Questionnaire. This enables us to assess the impact of workplace education and training using both subjective (managers’ assessments) and objective data on productivity, profits and establishment survival. We establish that workplace education and training can have positive impacts on establishment financial performance, survival and growth. In contrast to extant studies, it was found that the square and the interaction between own and co-workers years of training also have a positive and significant impact on hourly pay. We find evidence indicating that establishments with 60% or more of workers trained have a higher establishment performance and also have a powerful impact on the likelihood of establishment survival.
Download InfoIf 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.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2774.
Length: 36 pages
Date of creation: May 2007
Date of revision:
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- I2 - Health, Education, and Welfare - - Education
- J4 - Labor and Demographic Economics - - Particular Labor Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-05-12 (All new papers)
- NEP-BEC-2007-05-12 (Business Economics)
- NEP-EDU-2007-05-12 (Education)
- NEP-EFF-2007-05-12 (Efficiency & Productivity)
- NEP-HRM-2007-05-12 (Human Capital & Human Resource Management)
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.:
- Blundell, R & Dearden, L & Meghir, C, 1996. "The Determinants and Effects of Work Related Training in Britain," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
- William Collier & Francis Green & John Peirson & David Wilkinson, 2002.
"Training and Establishment Survival,"
Studies in Economics
0208, Department of Economics, University of Kent.
- Lorraine Dearden & Howard Reed & John Van Reenen, 2005.
"The impact of training on productivity and wages: evidence from British panel data,"
IFS Working Papers
W05/16, Institute for Fiscal Studies.
- Lorraine Dearden & Howard Reed & John Van Reenen, 2006. "The Impact of Training on Productivity and Wages: Evidence from British Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 397-421, 08.
- Dearden, Lorraine & Reed, Howard & Van Reenen, John, 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.
- Lorraine Dearden & Howard Reed & John Van Reenen, 2005. "The Impact of Training on Productivity and Wages: Evidence from British Panel Data," CEP Discussion Papers dp0674, Centre for Economic Performance, LSE.
- Idson, T. & Kahane, L.H., 1995.
"Team Effects on Compensation : An Application to Salary Determinantion in the National Hokey League,"
1995_14, Columbia University, Department of Economics.
- Idson, Todd L & Kahane, Leo H, 2000. "Team Effects on Compensation: An Application to Salary Determination in the National Hockey League," Economic Inquiry, Western Economic Association International, vol. 38(2), pages 345-57, April.
- Edward P. Lazear, 2000.
The Quarterly Journal of Economics,
MIT Press, vol. 115(1), pages 99-146, February.
- Harminder Battu & Clive R. Belfield & Peter J. Sloane, 2003. "Human Capital Spillovers within the Workplace: Evidence for Great Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(5), pages 575-594, December.
- Anna Vignoles & Fernando Galindo-Rueda & Leon Feinstein, 2004.
"The Labour Market Impact of Adult Education and Training: A Cohort Analysis,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 51(2), pages 266-280, 05.
- L Feinstein & Fernando Galindo-Rueda & Anna Vignoles, 2004. "The Labour Market Impact of Adult Education and Training: A cohort analysis," CEE Discussion Papers 0036, Centre for the Economics of Education, LSE.
- Battu, Harminder & Belfield, Clive R. & Sloane, Peter J., 2001. "Human Capital Spill-Overs Within the Workplace," IZA Discussion Papers 404, Institute for the Study of Labor (IZA).
- B. Wolfe & S. Zuvekas, . "Nonmarket outcomes of schooling," Institute for Research on Poverty Discussion Papers 1065-95, University of Wisconsin Institute for Research on Poverty.
- Moulton, Brent R, 1987. "Diagnostics for Group Effects in Regression Analysis," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(2), pages 275-82, April.
- Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 142-71, January.
- Alesina, Alberto & Giuliano, Paola, 2009.
"Preferences for Redistribution,"
IZA Discussion Papers
4056, Institute for the Study of Labor (IZA).
- Carla Haelermans & Lex Borghans, 2012.
"Wage Effects of On-the-Job Training: A Meta-Analysis,"
British Journal of Industrial Relations,
London School of Economics, vol. 50(3), pages 502-528, 09.
- Haelermans, Carla & Borghans, Lex, 2011. "Wage Effects of On-the-Job Training: A Meta-Analysis," IZA Discussion Papers 6077, Institute for the Study of Labor (IZA).
- Haelermans Carla & Borghans Lex, 2011. "Wage effects of on-the-job training; a meta-analysis," Research Memoranda 054, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
- Haelermans Carla & Borghans Lex, 2011. "Wage effects of on-the-job training. A meta-analysis," Research Memoranda 011, Maastricht : ROA, Research Centre for Education and the Labour Market.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.