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On-the-job training and productivity: Firm-level evidence from a large developing country

Qing Liu and Ruosi Lu

China Economic Review, 2016, vol. 40, issue C, 254-264

Abstract: We investigate the effects of on-the-job training on firm productivity and wages using a large panel data set constituted of all large and medium size manufacturing firms in China over 2003–2007. We estimate firm productivity carefully with a recent semiparametric method and combine the propensity score matching and the difference-in-differences techniques to estimate the treatment effect of training. We find consistent evidence that i) training helps boost firm productivity and wages; ii) the higher the training expenditure per capita, the higher the increase in productivity and wages; iii) firms benefit more from training than workers. These findings are not sensitive to industrial capital intensity or firm ownership structure.

Keywords: Training; Productivity; Matching (search for similar items in EconPapers)
JEL-codes: C21 C23 D24 J31 (search for similar items in EconPapers)
Date: 2016
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China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

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Handle: RePEc:eee:chieco:v:40:y:2016:i:c:p:254-264