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Wage and Productivity Effect of Continuing Training in Germany : A Sectoral Analysis

  • Anja Kuckulenz


    (Centre for European Economic Research)

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    Wage and productivity effects of training are compared to study how the training rent is shared between employers and employees. Using panel data from 1996-2002, I analyse the impact of continuing training on wages and productivity in a Cobb-Douglas production framework. Using system GMM techniques allows me to account for endogeneity and time invariant unobserved factors. Results suggest that the training rent is shared between employer and employee due to a positive e®ect of continuing training on both wages and productivity. The effect on productivity is about three times higher than the one on wages. High skilled workers capture a larger share of the rent than low skilled workers.

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    Paper provided by Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim in its series Working Papers of the Research Group Heterogenous Labor with number 06-06.

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    Length: 36 pages
    Date of creation: 27 Feb 2006
    Date of revision:
    Handle: RePEc:knz:hetero:0606
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