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 language | English |
|---|---|
| Pages (from-to) | 485-497 |
| Number of pages | 13 |
| Journal | Review of Economics and Statistics |
| Volume | 97 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - May 1 2015 |
ASJC Scopus subject areas
- Social Sciences (miscellaneous)
- Economics and Econometrics
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Konings, J., & Vanormelingen, S. (2015). The impact of training on productivity and wages: Firm-level evidence. Review of Economics and Statistics, 97(2), 485-497. https://doi.org/10.1162/REST_a_00460