Formal Training, Temporary Contracts, Productivity and Wages in Spain

Alfonso Alba-Ramirez

Oxford Bulletin of Economics and Statistics, 1994, vol. 56, issue 2, 151-70

Abstract: This article investigates the determinants and effects of firm-based training in Spain. We focus on the following questions: (1) Are there appreciable differences between firms which provide training and firms which do not? (2) Does the proportion of workers who receive training have a significant effect on firms' productivity and wages? In seeking quantitative answers to these relatively explored questions, we use a sample of some six hundred medium- and large-sized firms. Our main results indicate that larger firms and those undergoing technological change are more likely to provide their work force with formal training than other firms with similar characteristics. By estimating a production function, we also find evidence of the positive and significant effects of formal training on labor productivity and wages. Copyright 1994 by Blackwell Publishing Ltd

Date: 1994
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