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Who benefits from training and R&D: The firm or the workers? A study on panels of French and Swedish firms

Author

Listed:
  • Gérard Ballot

    () (ERMES, Université Paris II,)

  • Fathi Fakhfakh

    (ERMES, Université Paris II,)

  • Erol Taymaz

    () (Department of Economics, METU)

Abstract

The present paper offers a novel study of the effects of intangible assets on wages and productivity. Training, R&D, and physical capital are all taken into account, and their joint effects examined. We use panels of firms in order to control for unobserved fixed effects and the potential endogeneity of training and R&D, and have been able to obtain data for two different countries, France and Sweden, in order to explore the effects of institutional or national specificity. The estimation of productivity and wage equations allows us to show how the benefits of investment in physical capital, R&D and training are shared between the firm and the workers. Although the workers obtain significant benefits, the study shows that the firm obtains the largest return on the investments it makes. This is true not only for physical capital and R&D, but also for training. It suggests that firms can rationally invest in training and that the issue of under-investment in training should be re-examined.

Suggested Citation

  • Gérard Ballot & Fathi Fakhfakh & Erol Taymaz, 2002. "Who benefits from training and R&D: The firm or the workers? A study on panels of French and Swedish firms," ERC Working Papers 0201, ERC - Economic Research Center, Middle East Technical University, revised Jan 2002.
  • Handle: RePEc:met:wpaper:0201
    as

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    File URL: http://www.erc.metu.edu.tr/menu/series02/0201.pdf
    File Function: First version, 2002
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Kuckulenz, Anja, 2006. "Wage and Productivity Effect of Continuing Training in Germany: A Sectoral Analysis," ZEW Discussion Papers 06-025, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Raquel Ortega-Argilés, 2013. "R&D, knowledge, economic growth and the transatlantic productivity gap," Chapters,in: Handbook of Industry Studies and Economic Geography, chapter 11, pages 271-302 Edward Elgar Publishing.

    More about this item

    Keywords

    Training; R&D; productivity; wages;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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