The Impact of Training on Productivity: Evidence from a Large Panel of Firms

Emilio Colombo and Luca Stanca

No 134, Working Papers from University of Milano-Bicocca, Department of Economics

Abstract: This paper investigates the e®ects of training on labor productiv- ity using a unique nationally representative panel of Italian ¯rms for the period 2002 to 2005. We ¯nd that training has a positive and signi¯cant e®ect on productivity. Using a variety of panel estimation techniques, we show that failing to account for unobserved heterogene- ity leads to overestimate the impact of training on productivity, while failing to account for endogeneity leads to substantially underestimate it. Training also has a positive and signi¯cant impact on wages, but this e®ect is about half the size of the e®ect on productivity. Within occupational groups, the e®ect of training on productivity is large and signi¯cant for blue-collars, but small and not signi¯cant for white collars.

Keywords: On-the-Job-Training; Productivity; Wages; Panel Data (search for similar items in EconPapers)
JEL-codes: C23 D24 J31 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2008-01, Revised 2008-01
New Economics Papers: this item is included in nep-bec, nep-eff, nep-hrm and nep-lab
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:mib:wpaper:134

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