The impact of training on productivity and wages: evidence from British panel data

Lorraine Dearden (), Howard Reed and John van Reenen
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Howard Reed: Institute for Fiscal Studies

No W05/16, IFS Working Papers from Institute for Fiscal Studies

Abstract: It is standard in the literature on training to use wages as a sufficient statistic for productivity. This paper examines the effects of work-related training on direct measures of productivity. Using a new panel of British industries 1983-1996 and a variety of estimation techniques we find that work-related training is associated with significantly higher productivity. A one percentage point increase in training is associated with an increase in value added per hour of about 0.6% and an increase in hourly wages of about 0.3%. We also show evidence using individual level datasets that is suggestive of training externalities.

Keywords: Productivity; training; wages; panel data (search for similar items in EconPapers)
JEL-codes: C23 D24 J31 (search for similar items in EconPapers)
Pages: 39 pp.
Date: 2005-08-02
New Economics Papers: this item is included in nep-bec, nep-eff and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Related works:
Journal Article: The Impact of Training on Productivity and Wages: Evidence from British Panel Data* (2006)
Working Paper: The Impact of Training on Productivity and Wages: Evidence from British Panel Data (2005)
Working Paper: The impact of training on productivity and wages: evidence from British panel data (2005)
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