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Advanced Digital Technologies and Investment in Employee Training

Author

Listed:
  • Giorgio Brunello
  • Désirée Rückert
  • Christoph T. Weiss
  • Patricia Wruuck

Abstract

By use of firm-level data that cover 25 European Union countries, the United Kingdom, and the United States as well as a difference-in-differences approach, we show that employers adopting advanced digital technologies (ADTs) reduce their investment in training per employee. Compared with the investment in training by non-adopting firms, this reduction is negligible on impact but increases to −11.3% and −13.8% of the pretreatment mean 2 and 3 years after adoption. We argue that a reason for the decline is that ADTs and employee training are substitutes in production. Our findings point to challenges in realizing high levels of firm-sponsored training for employees in increasingly digital economies.

Suggested Citation

  • Giorgio Brunello & Désirée Rückert & Christoph T. Weiss & Patricia Wruuck, 2026. "Advanced Digital Technologies and Investment in Employee Training," Journal of Human Capital, University of Chicago Press, vol. 20(2), pages 287-312.
  • Handle: RePEc:ucp:jhucap:doi:10.1086/739416
    DOI: 10.1086/739416
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