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Employer provided training in Austria: Productivity, wages and wage inequality

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  • René Böheim
  • Nicole Schneeweis
  • Florian Wakolbinger

Abstract

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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Bibliographic Info

Paper provided by The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria in its series NRN working papers with number 2009-27.

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Length: 37 pages
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:jku:nrnwps:2009_27

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Keywords: employer-provided training; productivity; wages;

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  1. Benoit Dostie, 2006. "Wages, Productivity and Aging," Cahiers de recherche, CIRPEE 0645, CIRPEE.
  2. 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.
  3. Serguei Kaniovski & Michael Peneder, 2008. "Determinants of firm survival: a duration analysis using the generalized gamma distribution," Empirica, Springer, Springer, vol. 35(1), pages 41-58, March.
  4. Lisa M Lynch & Sandra E Black, 2002. "How to Compete: The Impact of Workplace Practices and Information Technology on Productivity," Working Papers 02-04, Center for Economic Studies, U.S. Census Bureau.
  5. Ann P. Bartel, 1992. "Training, Wage Growth and Job Performance: Evidence From a Company Database," NBER Working Papers 4027, National Bureau of Economic Research, Inc.
  6. Bartel, Ann P, 1995. "Training, Wage Growth, and Job Performance: Evidence from a Company Database," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 13(3), pages 401-25, July.
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