Abstract:
This article studies the impact of firm-sponsored training on productivity. The data used are taken from the Wo r k p l a c e and Employee Survey (WES) of Statistics Canada (19992002). The impact of training on productivity is measured by estimating a Cobb-Douglas production function, where investment in human capital is treated as a production input. Our methodology is distinguished from that used in earlier studies by the fact that we model the firm's decision to offer training or not as well as the effect of training on productivity, which allows us to take into account the selection bias associated with training decisions. Our results permit us to conclude that training designated as "formal" provides higher productivity gains than training regarded as informal. We note also that failure to account for selection bias results in an overestimation of the effects of formal and informal training on the productivity of firms.
Canadian Public Policy is edited by James B. Davies
More articles in Canadian Public Policy from University of Toronto Press Address: University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8 Series data maintained by Prof. Werner Antweiler ().
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