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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

    ()

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 Function: First version, 2008
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Bibliographic 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;

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Cited by:
  1. Croce, Giuseppe & Ghignoni, Emanuela, 2009. "Employer-provided training and knowledge spillovers: evidence from Italian local labour markets," MPRA Paper 14475, University Library of Munich, Germany.
  2. Giuseppe Croce & Edoardo Di Porto & Emanuela Ghignoni & Andrea Ricci, 2013. "Employer education, agglomeration and workplace training: poaching vs knowledge spillovers," Working Papers 162, University of Rome La Sapienza, Department of Public Economics.
  3. Rosanna Pittiglio & Filippo Reganati & Edgardo Sica, 2012. "Do Multinational Enterprises push up the Wages of Domestic Firms in the Italian Manufacturing Sector?," FIW Working Paper series 099, FIW.
  4. Elena Feltrinelli & Roberto Gabriele & Sandro Trento, 2013. "Do middle managers matter?," DEM Discussion Papers 2013/11, Department of Economics and Management.

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