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The Impact of Training on Productivity: Evidence from a Large Panel of Firms

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Author Info
Emilio Colombo ()
Luca Stanca ()

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Abstract

This paper investigates the e®ects of training on labor productiv- ity using a unique nationally representative panel of Italian ¯rms for the period 2002 to 2005. We ¯nd that training has a positive and signi¯cant e®ect on productivity. Using a variety of panel estimation techniques, we show that failing to account for unobserved heterogene- ity leads to overestimate the impact of training on productivity, while failing to account for endogeneity leads to substantially underestimate it. Training also has a positive and signi¯cant impact on wages, but this e®ect is about half the size of the e®ect on productivity. Within occupational groups, the e®ect of training on productivity is large and signi¯cant for blue-collars, but small and not signi¯cant for white collars.

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File URL: http://dipeco.economia.unimib.it/repec/pdf/mibwpaper134.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 134.

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Length: 28 pages
Date of creation: Jan 2008
Date of revision: Jan 2008
Handle: RePEc:mib:wpaper:134

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Related research
Keywords: On-the-Job-Training Productivity Wages Panel Data

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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This page was last updated on 2008-9-28.


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