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• W2170271657 abstract "There is a vast empirical literature of the effects of training on wages that are taken asan indirect measure of productivity. This paper is part of a smaller literature on theeffects of training on direct measures of industrial productivity. We analyse a panel ofBritish industries between 1983 and 1996. Training information (and other individualproductivity indicators such as education and experience) is derived from a question thathas been asked consistently over time in the Labour Force Survey. This is combinedwith complementary industry-level data sources on value added, wages, labour andcapital. We use a variety of panel data techniques (including system GMM) to argue thattraining significantly boosts productivity. The existing literature has underestimated thefull effects of training for two reasons. First, it has tended to treat training as exogenouswhereas in reality firms may choose to re-allocate workers to training when demand (andtherefore productivity) is low. Secondly, our estimates of the effects of training on wagesare about half the size of the effects on industrial productivity. It is misleading to ignorethe pay-off firms take in higher profits from training. The effects are economically large.For example, raising the proportion of workers trained in an industry by 5 percentagepoints (say from the average of 10% to 15%) is associated with a 4 per cent increase invalue added per worker and a 1.6 per cent increase in wages." @default.
• W2170271657 created "2016-06-24" @default.
• W2170271657 creator A5004443266 @default.
• W2170271657 date "2000-04-02" @default.
• W2170271657 modified "2023-09-25" @default.
• W2170271657 title "Who gains when workers train? Training and corporate productivity in a panel of British industries" @default.
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• W2170271657 doi "https://doi.org/10.1920/wp.ifs.2000.0004" @default.
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