Employee Training and Firm Performance: Evidence from ESF Grant Applications

Pedro Martins

No 14153, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: As work changes more quickly, firm-provided training may become more relevant. However, there is little causal evidence about the effects of training on firms. This paper studies a large training grants programme in Portugal, supported by the European Social Fund, contrasting firms that received the grants and firms that also applied but were unsuccessful. Combining several rich data sets, we compare a large number of potential outcomes of these firms, while following them over several years both before and after the grant decision. Our difference-in-differences models estimate significant positive effects on take up (training hours and expenditure), with limited deadweight; and that such additional training led to increased sales, value added, employment, productivity, and exports. These effects tend to be of at least 5% and, in some cases, 10% or more, and are robust in multiple dimensions.

Keywords: programme evaluation; productivity; training subsidies (search for similar items in EconPapers)
JEL-codes: H43 J24 M53 (search for similar items in EconPapers)
Pages: 82 pages
Date: 2021-02
New Economics Papers: this item is included in nep-bec, nep-eff, nep-eur, nep-hrm and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: Labour Economics, 2021, 72, 102056

Downloads: (external link)
https://docs.iza.org/dp14153.pdf (application/pdf)

Related works:
Journal Article: Employee training and firm performance: Evidence from ESF grant applications (2021)
Working Paper: Employee training and firm performance: Evidence from ESF grant applications (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp14153

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().