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Intangible training capital and productivity in Europe

Author

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  • O’Mahony, Mary
  • Peng, Fei

Abstract

This paper employs industry data, derived from linking the EU LFS to productivity accounts from EU KLEMS, to examine workforce training and productivity in European Union original members states. Training activities are modelled as intangible investments by firms and cumulated to stocks so their impact can be evaluated within a production function framework, including links to the use of information and communications technology (ICT). The results suggest significantly positive effects of training on productivity, both direct and interacted with ICT, with different impacts in services than in production industries. These results are robust to the use of instrumental variables methods, both lagged instruments and a set of variables that capture features of the operation of labour markets.

Suggested Citation

  • O’Mahony, Mary & Peng, Fei, 2011. "Intangible training capital and productivity in Europe," MPRA Paper 38648, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:38648
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    File URL: https://mpra.ub.uni-muenchen.de/38648/1/MPRA_paper_38648.pdf
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    References listed on IDEAS

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    Cited by:

    1. Edquist, Harald & Henrekson, Magnus, 2017. "Swedish lessons: How important are ICT and R&D to economic growth?," Structural Change and Economic Dynamics, Elsevier, vol. 42(C), pages 1-12.
    2. repec:bla:revinw:v:63:y:2017:i::p:s49-s67 is not listed on IDEAS
    3. Kevin J. Fox & Thomas Niebel & Mary O'Mahony & Marianne Saam, 2017. "The Contribution of Intangible Assets to Sectoral Productivity Growth in the EU," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63, pages 49-67, February.
    4. Crass, Dirk & Licht, Georg & Peters, Bettina, 2014. "Intangible assets and investments at the sector level: Empirical evidence for Germany," ZEW Discussion Papers 14-049, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    More about this item

    Keywords

    Training; Intangible Capital; EUKLEMS; EU LFS;

    JEL classification:

    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • 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

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