The impact of training on productivity and wages: Firm-level evidence

Jozef Konings, Stijn Vanormelingen

Research output: Contribution to journalArticle

26 Citations (Scopus)

Abstract

This paper uses firm-level panel data of on-the-job training to estimate its impact on productivity and wages. To this end, we apply and extend the control function approach for estimating production functions, which allows us to correct for the endogeneity of input factors and training. We find that the productivity premium of a trained worker is substantially higher compared to the wage premium. Our results are consistent with recent theories that explain work-related training by imperfect competition in the labor market.

Original languageEnglish
Pages (from-to)485-497
Number of pages13
JournalReview of Economics and Statistics
Volume97
Issue number2
DOIs
Publication statusPublished - May 1 2015
Externally publishedYes

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premium
wage
productivity
on-the-job training
firm
production function
evidence
labor market
worker
Wages
Productivity
Premium
Workers
Imperfect competition
Production function
Labour market
Panel data
Endogeneity
Control function
Factors

ASJC Scopus subject areas

  • Economics and Econometrics
  • Social Sciences (miscellaneous)

Cite this

The impact of training on productivity and wages : Firm-level evidence. / Konings, Jozef; Vanormelingen, Stijn.

In: Review of Economics and Statistics, Vol. 97, No. 2, 01.05.2015, p. 485-497.

Research output: Contribution to journalArticle

Konings, Jozef ; Vanormelingen, Stijn. / The impact of training on productivity and wages : Firm-level evidence. In: Review of Economics and Statistics. 2015 ; Vol. 97, No. 2. pp. 485-497.
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