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Skills, human capital and the plant productivity gap: UK evidence from matched plant, worker and workforce data

  • Haskel, Jonathan
  • Hawkes, Denise
  • Pereira, Sonia

Using two matched plant level skills and productivity datasets for UK manufacturing we document that (i) more productive firms hire more skilled workers: in 2000, plants at the top decile of the TFP distribution (controlling for their four-digit industry) hired workers with, on average, around 1/3rd of a year of additional schooling compared to firms in the bottom decile and (ii) in an accounting sense the skills gap between the firms in the top and bottom deciles of the TFP distribution accounts for 3 to 10% of the TFP gap depending on the specification used.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5334.

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Date of creation: Nov 2005
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Handle: RePEc:cpr:ceprdp:5334
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  1. George S Olley & Ariel Pakes, 1992. "The Dynamics Of Productivity In The Telecommunications Equipment Industry," Working Papers 92-2, Center for Economic Studies, U.S. Census Bureau.
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  8. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
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  10. Abowd, John M. & Kramarz, Francis & Margolis, David N. & Troske, Kenneth R., 2001. "The Relative Importance of Employer and Employee Effects on Compensation: A Comparison of France and the United States," Journal of the Japanese and International Economies, Elsevier, vol. 15(4), pages 419-436, December.
  11. Murphy, Kevin M & Topel, Robert H, 1985. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(4), pages 370-79, October.
  12. Haskel, Jonathan, Sonia Pereira, 2003. "Skills and productivity in the UK using matched establishment and worker data," Royal Economic Society Annual Conference 2003 100, Royal Economic Society.
  13. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 1999. "Information Technology, Workplace Organization and the Demand for Skilled Labor: Firm-Level Evidence," NBER Working Papers 7136, National Bureau of Economic Research, Inc.
  14. John M. Abowd & Robert H. Creecy & Francis Kramarz, 2002. "Computing Person and Firm Effects Using Linked Longitudinal Employer-Employee Data," Longitudinal Employer-Household Dynamics Technical Papers 2002-06, Center for Economic Studies, U.S. Census Bureau.
  15. John Abowd & John Haltiwanger & Ron Jarmin & Julia Lane & Paul Lengermann & Kristin McCue & Kevin McKinney & Kristin Sandusky, 2002. "The Relation among Human Capital, Productivity and Market Value: Building Up from Micro Evidence," Longitudinal Employer-Household Dynamics Technical Papers 2002-14, Center for Economic Studies, U.S. Census Bureau.
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