We use data on Austrian firms and employees to estimate the effects of employer-provided training on productivity, wages, and the inequality of wages within firms. While the average amount spent on employer-provided training is low in general, we find a robust positive elasticity of training on productivity of about 0.04. In-house training is more effective than external courses, and language, administrative and personal skills courses are more effective than sales training and IT-courses. We find a significant relationship between training and wages, the coefficient is about 0.05. We find no significant effect of training on the inequality of wages within firms.
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Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number
2009-15.
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