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 |
| Externally published | Yes |
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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 journal › Article
}
TY - JOUR
T1 - The impact of training on productivity and wages
T2 - Firm-level evidence
AU - Konings, Jozef
AU - Vanormelingen, Stijn
PY - 2015/5/1
Y1 - 2015/5/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84928546420&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84928546420&partnerID=8YFLogxK
U2 - 10.1162/REST_a_00460
DO - 10.1162/REST_a_00460
M3 - Article
AN - SCOPUS:84928546420
VL - 97
SP - 485
EP - 497
JO - Review of Economics and Statistics
JF - Review of Economics and Statistics
SN - 0034-6535
IS - 2
ER -